NOVOSTI March 2016 - Industry News - Taxation - RSL Law
Latest Updates:
(+44) 207 060 5333 (UK)
+7 (499) 6092322 (RUS)
Exact matches only
Search in title
Search in content
Search in comments
Search in excerpt
Filter by Custom Post Type

NOVOSTI March 2016 – Industry News – Taxation




Below is a brief summary of upcoming changes, following the Government’s Budget, announced in March 2016:

Personal Income Tax

The Personal Allowance is the amount of income you can earn before you start paying Income Tax. The Personal Allowance is currently £10,600. It will rise to £11,000 in 2016/17 and to £11,500 in 2017/18. The higher rate threshold after which you pay higher rate Income Tax will increase from £42,385 to £43,000 in 2016 and to £45,000 in April 2017.

Business Tax: small businesses

From April 2017, small businesses that occupy property with rateable value of £12,000 or less will pay no business rates. This is increased from the current threshold of £6,000. The government also introduced a tapered rate of relief on properties up to £15,000 rateable value.

Corporation Tax

The main rate of Corporation Tax will be cut to 17% in 2020.

Capital gains tax

Capital Gains Tax is a tax on the gain you make when you sell something (an asset) that has increased in value since you obtained it. The rate of Capital Gains Tax depends on the rate of Income Tax you pay. From April 2016, the higher rate of CGT will be reduced from 28 to 20% and the basic rate from 18% to 10%.

Stamp Duty Land Tax: non-residential property 

From 17th March 2016 stamp duty land tax will be applied on the purchase of commercial property at 0% on property valued under £150,000, 2% on property valued between £150,000 and £250,000 and thereafter at 5%.

Stamp Duty Land Tax: residential property

From 1 April 2016 stamp duty land tax will be applied at 3% extra, i.e. between 3% and 15%, on the acquisition of additional residential properties such as a second home or buy-to-let property. There will be no exemptions for companies or larger investors. For more information please read the “Real Estate” section of the current issue of “NOVOSTI”.

Non-domicile UK residents

In the 2015 Summer Budget it was announced that non-domiciled UK individuals, who have been resident in the UK for 15 out of the past 20 tax years will become deemed UK domiciled, and therefore liable to pay taxes on their ‘world-wide’ income, after 5th April 2017. In this March 2016 Budget, it is confirmed that non-domicile UK residents, who have a non-UK resident trust set up before becoming deemed domiciled in the UK will not be taxed on income and gains retained in the trust. Furthermore, for the purposes of Capital Gains Tax, non-domicile UK residents, who become deemed domiciled in April 2017, will be able to treat the base cost of their non-UK based assets, as being the market value of that asset on 6 April 2017.

The above is a brief summary of the proposed changes and does not constitute a legal or tax advice. Every situation is different. If you think that any of the above may affect your personal circumstances, you should seek an advice from a qualified professional.

Click here Click here