Following the budget published by the Philip Hammond this week, we thought we’d share the highlights with you, as provided by our colleagues at White Hart Associates.
The budget was fairly light in content prompting some light-hearted banter from the Chancellor on how the government is run by two-thirds of Top Gear (May and Hammond!). He did though make a few announcements on tax and as usual WHA have put together a Summary of these for your review.
The main highlights are listed here but should you wish to read the full report, we have attached for your information.
- From 22 November 2017, Stamp Duty Land Tax (SDLT) is abolished for firsttime buyers on homes costing up to £300,000; no SDLT on first £300,000 of first-time buyer’s purchase of homes costing up to £500,000.
- Indexation allowance, which gives companies relief for the effect of inflation on capital gains, will be frozen at January 2018 for disposals after that date.
- The rate of the Research and Development Expenditure Credit increases from11% to 12% with effect from 1 January 2018.
- Tax-free personal allowance rises from £11,500 to £11,850; threshold for 40% tax rises from £45,000 to £46,350.
- Tax rates and thresholds for Scottish taxpayers are to be confirmed by the Scottish Parliament in December.
- Abolition of Class 2 National Insurance and reform of Class 4 NIC for self employed is deferred by a year to April 2019 in order to assess impact on contributory benefits.
- Freezing of VAT registration threshold at £85,000 for two years instead of normal £2,000 increase, so speculation about a possible reduction in the threshold was unfounded.
- Capital Gains Tax annual exempt amount rises from £11,300 to £11,700.