The Chancellor has confirmed that from 2018 Class 2 National Insurance Contributions (for the self-employed) would be abolished.
“That’s a simpler tax system and a tax cut of over £130 for each of Britain’s three million strong army of the self-employed,” George Osborne told parliament in today’s Budget.
Meanwhile, Capital Gains Tax (CGT), which currently stands at 28%, will be cut to 20%. CGT paid by basic rate taxpayers will move from 18% to 10%.
The rates will come into effect in three weeks’ time. The old rates will be kept in place for gains on residential property and carried interest.
Osborne is also introducing a brand new 10% rate on long term external investment in unlisted companies, up to a separate maximum of £10 million of lifetime gains.
