For the first time in over twenty years, we saw an Autumn Budget which includes included a few surprise announcements, for example changes to Stamp Duty Land Tax for first time buyers.
Not wanting to repeat Theresa May’s difficult speech at the Conservative Party conference, the Chancellor of the Exchequer, Philip Hammond, came prepared with a glass of water and cough sweets.
Whilst starting by committing a further £3 billion to fund Brexit over the next two years, Mr Hammond stated that this Budget was “about more than Brexit” promising to lay the foundations to build a country fit for the future.
The key Budget 2017 Highlights confirmed and announced today were:
- Personal allowance confirmed to increase to £11,850 from April 2018 and £12,500 by 2020
- Higher rate threshold to increase to £46,350 from April 2017 and £50,000 by 2020
- National Living Wage to increase to £7.83 per hour from April 2018
- National Minimum Wage for young workers also set to increase from April 2018
- Effective today, Stamp Duty Land Tax abolished for first time buyers on first £300,000 for properties costing up to £500,000
- Seven day wait for Universal Credits to abolished
- Employees charging electric cars at work will not suffer a benefit in kind on the supply of electricity
- Benefit in kind charge on diesel cars to increase by 1% from April 2018
- VAT threshold to remain at £85,000 for next two years
- Indexation allowance for companies realising capital gains to be frozen from January 2018
- Research and Development tax credit for large companies to increase to 12%
- EIS relief limits doubled for ‘knowledge intensive’ companies
- Income tax to be applied to royalties relating to UK sales paid to low tax jurisdictions from April 2019
- Business rates to increase in line with CPI, rather than RPI, from April 2018
- Business rates revaluations to take place every three years rather than every five years starting after the next revaluation due in 2022
- £1,000 discount on business rates available to pubs with a rateable value of less than £100,000 to be extended to March 2019
- Increased duty on high-strength, low quality alcohols from April 2019
- Duty on wine, beers, spirits and some ciders to be frozen
- Local authorities can charge 100% council tax premium on empty properties
- Fuel duty for petrol and diesel frozen for another year
Our more detailed summary which follows on from our Budget 2017 Highlights post will follow tomorrow.