Chancellor George Osborne’s new 2016 Budget is making quite the impression throughout the country.
While some sectors i.e. are taking a hit from the announcement -as discussed in our blog post: LANDLORDS AND PROPERY INVESTORS TAKE ANOTHER HIT FROM THE HOUSE OF COMMONS- others are reaping the benefits.
Despite speculation that Entrepreneurs’ Relief could be scrapped, it has lived to see another year in the country’s budget allowances.
Therefore, business owners can receive a reduced Capital Gains Tax rate of 10% when selling all or part of their company, as long as they own more than 5%.
As mentioned in our post, from April 2016 the higher rate of Capital gains tax will be reduced from 28% to 20% and the basic rate from 18% to 10%.
Small business owners can also celebrate over how, unlike previous years, there is no need to speculate over whether their relief will continue over the 12 month period. The chancellor has said it will remain permanently extended to those whose premises have a ratable value of up to £15,000.
An estimate of around 600,000 small businesses will be left not having to pay the business rate tax, and another 250,000 firms will see a substantial cut in their business rate tax.
A reduction in Corporation Tax has also been seen. The initial announcement said that the rate should be cut down to 18% by 2020, (currently at 20%). However Osborne has cranked it up a notch announcing that small business owners will pay 19% by 2017 and 17% by 2020.