Budget 2016 - business announcements

The Chancellor George Osborne delivered his Budget statement to the House of Commons on Wednesday 16 March 2016.

This is a summary of the main announcements affecting businesses:

Corporation tax 

The rate of corporation tax will be reduced to 17% by April 2020. 

Digital tax-free allowance

From April 2017, there will be 2 new £1,000 tax-free allowances. The first will for selling goods or providing services online and the other for property income. 

Business rates 

From next April, the threshold for small business rate relief will increase from £6,000 to £15,000. The higher rate threshold will rise from £18,000 to £51,000. 

Stamp duty 

There will be a nil-rate band of stamp duty on purchases of commercial properties up to £150,000. There will be a 2% rate on the next £100,000 and a 5% top rate on purchases above £250,000. 

Self employed 

In 2018, class 2 national insurance contributions will be abolished for the self-employed.

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