#Budget2016: 10 trending topics on Twitter
Eleanor O'Neill rounds up some of the Twitter reactions to key Budget announcements.
The Chancellor has announced the introduction of a Lifetime ISA for adults under 40. From April 2017, up to £4,000 can be paid in annually and will be topped up by a government bonus of 25%. Funds in the ISA will have to be used for buying a first home or as a retirement fund – it is intended as a helping hand for young people. However some tweeters accused Mr Osborne of missing the real issue.
Lifetime ISA; extra complexity, possibly damaging to pensions and not well targeted https://t.co/1MdrOqY9N8— Philip Coggan (@econbuttonwood) March 17, 2016
2. Sugary drinks down the sink
Soft drinks companies will pay a levy on drinks with added sugar from April 2018.
This will apply to drinks with total sugar content above 5 grams per 100 millilitres, with a higher rate for more than 8 grams per 100 millilitres. There are exemptions for milk-based drinks or fruit juices but these are likely to raise some interesting questions
3. UK taxes for UK profits
Following recent publicity around tax paid in the UK by multinational companies there were a number of measures affecting these large companies. One of these was a cap on relief for interest payments of 30% of UK taxable earnings. There were also measures on hybrid mismatches and cross border royalty payments.
Stamp duty change and tax avoidance moves will mean higher taxes for larger businesses. Smaller businesses appear winners #Budget2016— Kamal Ahmed (@bbckamal) March 16, 2016
4. Increase of income kept in-pocket
The Personal Allowance, already rising to £11,000 for 2016-17, will increase again from April 2017 to £11,500.
The point at which people start paying the higher rate of tax (40%) was £42,385 for 2015/16. It is £43,000 for 2016/17. It will be raised to £45,000 from April 2017.
Osborne tax cuts for wealthy create £32bn headache, says thinktank https://t.co/rn5G3DIx2a— Guardian politics (@GdnPolitics) March 17, 2016
5. Self-employed national insurance
Class 2 NI contributions for self-employed workers are set to be scrapped from 2018. This will mean simplification for many of the self-employed but some additional reform will be required to address benefit entitlements.
6. Capital gains tax
In a surprise move the Chancellor announced that CGT rates would be reduced for gains accruing on or after 6 April 2016.
The rates will move from 18% to 10% for gains up to the basic rate income tax limit and from 28% to 20% for gains above the limit. However, some gains will be excluded – those accruing on the disposal of residential property (that does not qualify for private residence relief) and carried interest.
Interested to see what overall CGT cut means for Entrepreneur's Relief though #Budget2016— James Hurley (@jameshurley) March 16, 2016
7. Life-raft for the North Sea
Significant tax support has been extended to the oil and gas industry to help bolster the North Sea economy – currently suffering from low oil prices.
The Petroleum Revenue Tax has been effectively abolished and the supplementary charge on oil and gas extractions has been dramatically reduced from 20% to 10%.
8. Corporation tax reduction
The government had already committed to reducing the corporation tax rate to 18% but has now taken this further by reducing the rate to 17% by April 2020. This will make the UK rate the lowest among the G20 nations.
Chancellor cuts corporation tax to 17% to sweeten that clamp down on tax avoidance #Budget2016— Paul Brand (@PaulBrandITV) March 16, 2016
9. Evolution in education
Education reforms and funding played a key part in the Budget with 25% of secondary schools being given longer days in 2017 and every school converting to an academy by 2022.
£500 million has been put toward a new ‘fair funding formula’ to address imbalances in the system with 90% of schools benefitting by the end of Parliament.
Kids these days have it tough. The government is hitting their sugar and making them study maths until 18. #Budget2016— Stephen Bush (@stephenkb) March 16, 2016
10. Talking transport
The £80 million Crossrail 2 project, which will create a connecting route between South-West and North-East London, has been given the go-ahead and should reduce congestion in Victoria and Waterloo stations.
Other plans for a £60 million investment in the HS3 between Leeds and Manchester have been met with some scepticism.