Budget 2016 Top 10 Summary
17th March 2016
Posted in Articles, Budget by Forbes Dawson
Click here to download our Budget Top 10 Summary
This is George Osborne’s fourth Budget in a 12 month period – long gone are the good old days where we had one March budget each year and the HMRC press releases were issued by hand!
Our initial reaction is that this is a good budget for entrepreneurs and the small and medium-size companies that make up the bulk of our client base. The reduction in business rates, which is a real deterrent to small business, is particularly welcome.
Corporation tax rates continue to fall and hence companies continue to be the structure of choice for both trading businesses and investment of surplus funds.
The rise in dividend rates from 6 April 2015 has attracted little publicity, and everyone should be reviewing their structures in light of this. In many cases it will make sense to take a very large dividend as the effective rates next year represent a tax hike up to 25% for individuals who traditionally take high dividends each year.
Ironically, capital gains tax rates have been reduced and the new 10% relief introduced for share subscriptions. Although the anti avoidance rules are being tightened up, We had anticipated that there might be a rise in CGT rates to limit the desire to get money out of companies as capital. We expect this will remain a key area where clients need advice.
On behalf of the team at Forbes Dawson I hope you find our Budget Summary useful. Please do not hesitate to contact us if you want to discuss any of the budget changes and action that you should take.
Michael Dawson
