Philip Hammond presented the 2017 Autumn Budget on Wednesday 22 November 2017.
This blog focuses on the direct and indirect tax measures announced, as well as the announcements made previously which affect the 2017-18 tax year and beyond.
It concentrates on the issues likely to affect you, your family and your business.
If you have any questions please do not hesitate to contact me for advice.
Main Budget proposals from the Autumn Budget
- Indexation allowance for capital gains in companies will be frozen for disposals after 1 January 2018.
- The VAT registration threshold will be frozen at £85,000 for two years and there will be a consultation on its future.
- From today, there will be no stamp duty for first time buyers on the first £300,000 of a property bought for £500,000 or less.
- The income tax personal allowance for 2018-9 will be £11,850 and the 40% threshold will be £46,350.
A reminder of key changes announced previously
- The nil rate dividend allowance of £5,000 will be reduced to £2,000 from April 2018.
- It was announced in the Spring Budget that National Insurance rates for the self employed (Class 4) were going increase from 9% to 10% from 6 April 2018 and then to 11% from 6 April 2019, however the Chancellor later did a u-turn on this and there will be no increase.
- Class 2 National Insurance will now be abolished from 6 April 2019.
- Corporation tax rates will fall to 17% from 1 April 2020 (Current: 19%).
- There will be £1,000 allowances for trading and property income from 5 April 2017.
- The changes to interest deduction rules for landlords start from April 2017, being phased in over a 4 year period. Relief for interest will be limited to basic rate tax.