Dividend tax credits will be abolished from April 2016 and there will be a new dividend tax allowance of £5,000 a year. Above that level the tax rates will rise by 7.5%.
NIC FOR EMPLOYERS
The national insurance contribution (NIC) employment allowance of £2,000 will rise to £3,000 from April 16. This only applies to employers who employ staff and not available to those payrolls that have directors only.
IHT MAIN RESIDENCES
There will be an extra transferable IHT nil-rate band for main residences passed on death to direct descendants, starting at £100,000 in 2017/18 and rising to £175,000 in 2020/21
CORPORATION TAX RATE
The corporation tax rate will be reduced from 20% to 19% in the financial year 2017, and 18% in 2020.
AIA ANNUAL INVESTMENT ALLOWANCE
The annual investment allowance available to businesses will be reduced to £200,000 from 1 January 2016.
Income Tax – Personal Allowances and Basic Rate Band
The personal allowance for 2016/17 will rise from 10,600 to 11,000 and the basic rate band will rise by £215 to £32,000.
From 2017/18 the personal allowance will increase to £11,200 and there will be a further increase in the basic rate band to £32,400. Once the personal allowance reaches 12,500 it will be upgraded with the national minimum wage.
Residential Landlords – Reform of the Wear and Tear Allowance
The wear and tear allowance will be replaced from April 2016 with a new relief that allows all residential landlords to deduct the actual costs
of replacing furnishings. Capital allowances will continue to apply for landlords of furnished holiday lets.
From 6th April 2016 the level of rent-a- room relief will be increased from £4,250 to £7,500 a year.Self-employed National Insurance Contributions
The government will consult in autumn 2015 on abolishing class 2 NIC’s and reforming class 4 NIC’s.