How the Budget will be affecting you!
George Obsborne has just finished delivering the latest budget! Here are some of the key poinst that could affect you.
Key points from the Budget:
Tax-free allowance raised to £11,500
The tax-free personal allowance is being raised to £11,500 with the Chancellor declaring 31 million people will be paying less tax and 1.3m of the lowest paid taken out of tax altogether.
Mr Osborne also announced the higher rate threshold will rise from £42,385 to £45,000 from April next year
Lifetime ISA’s for under 40’s
A new “lifetime ISA” will be introduced for people under 40, the Chancellor announced.
From April 2017, people can use them to save up to £4,000 each year until they are 50.
Mr Osborne said that for every £4 people save, the Government will give them £1.
He said it meant people would not have to choose between saving for a new home or for retirement.
Headline rate of Capital Gains to be cut to 20%
The headline rate of Capital Gains Tax will be cut, George Osborne said.
It currently stands at 28% but will now be cut to 20%.
Introduction of Sugar Tax
A sugar levy will be introduced on soft drinks. It will come into force in 2018 to give the industry time to adjust, the Chancellor says. The £520m expected to be raised will be used to help support school sport.
End of the 3.30pm school finish.
The end of the 3.30pm school bell was confirmed by the Chancellor, with funding for activities including extra sport in England. Schools will now finish at 4.30pm.
All schools to become academies by 2020
The Chancellor unveiled his plan to turn every primary and secondary school in England into an academy by 2020.
Small business rate relief doubles for small business’s
The Chancellor today announced that he was ‘more than doubling’ the small business rate relief . He will be raising the threshold from £6,000 to £15,000 and from £18,000 to £51,000 for the higher rate.
George Osborne said 600,000 small businesses would pay no business rates at all from next year as a result, saving them £6,000.
“Today I am more than doubling small business rate relief, and I’m more than doubling it permanently,” he said.