The chancellor omitted to mention the majority of the new measures that the government has proposed for the 2016 Finance Bill when he presented his Autumn Statement last Wednesday. In this guide we fill in the details for SME owners and tax advisers.

All these measures are to be included in the Finance Bill 2016, unless otherwise indicated.

Personal tax

Personal tax

Personal allowance and basic rate tax band

  • It is proposed to raise the personal allowance to £12,500 and the higher rate threshold to £50,000 by 2020/21.

Extending averaging for farmers

  • UPDATE: following consultation the averaging period for self-employed farmers will be extended from 2 years to 5 years with farmers having the option of either averaging period. From April 2016.

Netherlands Benefit Act for Victims of Persecution 1940-1945

  • Exemption from income tax certain pension and annuity payments made by the Netherlands government, payable to victims of national-socialist and Japanese aggression during World War II. From April 2016.

Taxation of sporting testimonials

 From 6 April 2017

  • Simplification of the tax treatment of income from sporting testimonials: all income from sporting testimonials and benefit matches for employed sportspersons will be liable to income tax.
  • An exemption of up to £50,000 for employed sportspersons with income from sporting testimonials that are not contractual or customary.
  • Applies where the sporting testimonial is granted or awarded on or after 25 November 2015, and only to events that take place after 5 April 2017.
  • National Insurance treatment of this income which will follow the income tax treatment. 

London Anniversary Games and World Athletics and Paralympics Championships

  • Exemption for non-resident competitors in the 2017 World Athletics and Paralympics Championships and the 2016 London Anniversary Games from income tax on their earnings from the event.
  • 2016 will be the final year such an exemption is granted to the London Anniversary Games as the Olympic torch is passed to Rio de Janeiro.