Budget Booklet Autumn 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.