Budget Booklet Autumn 2017

Posted on November 23, 2017

Chancellor Philip Hammond delivered the first Autumn Budget to Parliament yesterday. He stated that the UK has entered a “critical phase” in Brexit negotiations and that £3bn had been set aside for Brexit preparations. Housing and technology were a key focus of the speech.

The key announcements were as follows:-

  • An increase in the personal allowance for income tax from £11,500 for 2017/18 to £11,850 for 2018/19
  • Higher rate threshold for income tax to rise from £45,000 in 2017/18 to £46,350 in 2018/19
  • The government will not proceed with the previously announced increases to Class 4 National Insurance Contributions (NIC) from 9% to 11%
  • From April 2019, Class 2 NIC will be abolished
  • From 6 April 2018, the tax-free dividend allowance will be reduced from £5,000 to £2,000
  • From 6 April 2018, the annual exempt amount for capital gains tax for individuals increases from £11,300 to £11,700
  • Corporation tax rates will be reduced from 19% to 17% for all companies from 1 April 2020
  • EIS investment limits doubled for individuals investing in Knowledge-intensive companies (KICs) for shares issued on or after 6 April 2018
  • The 100% first year capital allowance for zero-emission goods vehicles is to be extended to 31 March 2021 for corporation tax
  • Employer-provided electricity for electric cars will be exempted from being taxed as a benefit in kind from April 2018
  • The diesel supplement for the taxable diesel car benefit will increase from 3% to 4% from 6 April 2018 but removed altogether for diesel cars certified to the RDE2 standard
  • New diesel vehicles registered after 1 April 2018 that do not meet the RDE2 standard will pay higher vehicle excise duty
  • Business rates revaluations will be every three years, starting after the next revaluation due in 2022. Businesses affected by the ‘staircase tax’ can request recalculations backdated to April 2010
  • Making Tax Digital will take effect from 1 April 2019 for businesses with a turnover above the VAT threshold for their VAT records
  • From April 2018, the National Living Wage will increase
  • The Pensions Lifetime Allowance will rise to £1,030,000 for 2018/19
  • From 22 November 2017, first time buyers will not pay Stamp Duty Land Tax (SDLT) for a residential property that is £300,000 or less
  • Download your full copy of the Garratts Budget Report Autumn 2017.

    If you would like to discuss any of the issues raised by the Budget, please do contact us.

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