0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Budget 2016 – What George Osborne's Announcement Means for UK Businesses

Written by: Keith Tully

Published: 16th March 2016

Business rates

Budget 2016 – What George Osborne's Announcement Means for UK BusinessesAmong the most significant announcements of George Osborne’s second Budget of the new parliament was that more than half a million small businesses are to be relieved of the responsibility of making business rate payments from April 2017.

The measure could save companies as much as £6,000 each on an annual basis with roughly 600,000 British businesses expected to benefit financially as a direct result.

The decisions announced in the latest Budget will end the ad hoc introduction of temporary business rate reliefs that have been used in recent years.

Stamp duty

Changes to the government’s stamp duty policies mean that 90 per cent of small businesses could potentially benefit from reduced stamp duty levels relating to commercial properties.

Commercial properties worth less than £150,000 will now be exempt from stamp duty, while any worth over £100,000 will be subject to 2 per cent charges and any worth over £250,000 will face 5 per cent charges.

Corporation tax

Plans are now in place for the headline rate of corporation tax across the UK to be reduced to 17 per cent from 2020, with that reduction expected to be offset by the extra amounts recouped through proactive efforts to cut out tax avoidance.

Measures are to be introduced to prevent multinational companies from using “complex structures” to help them pay less tax in the UK and as a whole across their operations worldwide. These changes to the corporation tax rules are expected to add significantly to the total amounts paid annually as tax revenues to HMRC.

Sugar tax

Among the more surprising announcements made by the chancellor in his latest Budget speech was that which outlined the government’s intention to introduce a new tax on soft drinks. The so-called sugar tax is designed as a measure aimed at limiting the harmful effects of sugary drinks on public health and particularly on children.

Northern Powerhouse

The government is continuing with efforts framed as support for the development of a so-called Northern Powerhouse and the creation of a counterbalance to the strength of the London economy in the north of England.

Plans to create a new HS3 rail line between Manchester and Leeds have officially been given the green light, while efforts to create a new four-lane M62 motorway are set to be fully funded and plans to build a road tunnel between Manchester and Sheffield are to be considered.

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners