The chancellor made his 2016 Budget speech today and made a joke on pensions: "...we'll keep the lump sum and abolish the Liberal Democrats."

• The world: worldwide productivity growth is decelerating. In the UK, the drag from the financial crisis has not eased. The International Monetary Federation warns of economic derailment. 
• The UK: the Office of Budget Responsibility (OBR) estimates the UK's economic growth as 2.2% for 2015, 2% for 2016, 2.2% 2017 and 2.1% for three years following.
• Government borrowing has not decreased as planned. 

Key announcements from the speech (full coverage of published documents will follow when they are released by HMRC)

Income tax 

From April 2017

• The personal allowance increases to £11,500
• The higher rate threshold increases to £45,000

NICs

• From 2018 abolish Class 2 NICs for the self employed

Capital gains tax

From April 2016

• Main rate reduced to 20%
• Basic rate reduced to 10%
• No changes for CGT on gains on residential property and carried interests

ISAs

• A lifetime ISA for the under 40s to fund pension/savings
• £20k ISA limit for everyone

Corporation tax

Government to publish a new roadmap and level the playing field between big multinationals and small companies

• Corporation tax to be reduced to 17% from 2020
• Restrict interest deductions from April 2017, restricted to 30% with a group limit
• Hybrid mismatch rules
• Withholding tax on royalties
• Modernisation of loss relief: 50% restriction of carried forward losses (25% for banking companies)

Online sales

• Measures to ensure VAT not avoided by online sales

Uberisation

• £1,000 allowance for micro online trading/selling services/property.

Business rates

• Increase in small business rate relief

Stamp Duty Land Tax

• Commercial property new regime from midnight 16 March 2016.
• Residential property increased SDLT: will also apply to large investors.

Public sector pensions

• Increase: employer contributions to increase.

Tax avoidance/evasion: action will be taken on avoidance by:

• Personal Service Companies
• Disguised remuneration rules
• Transfer offshore of development profits
• A cap exempt gains on employee shareholder status
• Loans to participators subject to a 32.5% tax charge 
• Termination payments will attract Employer NICs

Sugar tax

• A levy introduced from 2018
• 2 bands: excluding milk and fruit drinks

Climate change

• Carbon taxes reformed

Petroleum Revenue Tax

• To be abolished

"The Northern Powerhouse"

• Introduction of Mayors
• More rail

London

• Crossrail 2

Floods

• Increase in insurance premium tax

Excise duties

• Fuel duty remains frozen
• Tobacco duty increases
• Beer, cider and whisky duty frozen

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