Autumn Statement 2016 round-up

Chancellor Philip Hammond delivered Autumn Statement 2016 to parliament on 23 November 2016.

Here is a round-up of the main announcements:

Business

Corporation tax

The government confirmed it will reduce corporation tax to 17% by 2020.

National insurance

National insurance thresholds for both employers and employees will be aligned at £157 per week from April 2017.

Salary sacrifice

Employers and employees making use of salary sacrifice schemes will be subject to the same tax as cash income. Pensions, pensions advice, cycle to work schemes, ultra low emission cars and childcare will be exempt from the change.

Personal

Personal allowance

The tax-free personal allowance will rise to £11,500 from April 2017. The allowance will rise to £12,500 by 2020 and increase in line with inflation after 2020/21.

National living wage

The national living wage will increase to £7.50 per hour in April 2017.

Savings bond

Details of a new 3-year NS&I savings bond will be announced in Budget 2017.

Other

Making Tax Digital

The government will publish more detail about Making Tax Digital in January 2017.

Insurance premium tax

The standard rate of insurance premium tax will increase from 10% to 12% from June 2017.

Contact us today about any aspect of Autumn Statement 2016.

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