The Chancellor Philip Hammond presented his first Autumn Budget on Wednesday 22 November 2017.
It is the first one from the new budget timetable, which has changed to an Autumn Budget and a Spring Statement. The change means the UK will have just one fiscal event a year, meaning greater stability for businesses and individuals as there will be less changes to the tax system. Holding the Budget in Autumn also means that changes are announced well ahead of the new tax year where most changes come into effect. The finance Bill will follow the budget, just as it does now, but with the change in the timetable the aim from government will be to reach Royal Assent before the start of the next tax year in the spring.
The Chancellor’s report set out a number of actions the government will take including support for more housebuilding. His view is that the economy continues to grow and continues to create more jobs. The major attention-grabber was aimed at first time buyers who will not have to pay Stamp Duty Land Tax on homes costing up to £300,000.
We have put together a summary of the Autumn Budget which focuses on the tax measures that may affect you, your family and your business. To help you decipher what was said we have included our own comments.
Our summary concentrates on the tax measures which include:
Main Budget tax proposals
- increases to the personal allowance and basic rate band
- more tax relief for investment in certain Enterprise Investment companies
- proposed changes to Entrepreneurs’ Relief
- improvements to Research and Development tax credit regimes
- VAT limits frozen for two years
- support for businesses to cope with the effects of business rates revaluation and the so called ‘staircase tax’.
Previously announced measures include:
- plans for Making Tax Digital for Business
- the reduction in the Dividend Allowance
- changes to NICs for the self-employed
- capital allowance changes for cars from April 2018.
The Budget proposals may be subject to amendment in the Spring Statement and subsequent Finance Act. You should contact us before taking any action as a result of the contents of this summary.
Download our full Autumn Budget 2017 Summary for some free and impartial advice on what these new tax proposals mean for you.