Treasury Chancellor Philip Hammond has announced his 2017 Autumn Budget. Here is the summary of the key changes in the Budget:
Personal Allowance will rise from £11,300 to £11,850 in 2018/19. This is forecast to reach £12,500 by 2020.
Higher rate Threshold will increase from £45,000 to £46,350 from 6 April 2018.
The National Living Wage will increase in April 2018 from £7.50 an hour to £7.83 for the over 25’s.
From 6 April 2018, the tax free allowance on dividends will be reduced from £5,000 to £2,000.
The annual exemption for capital gains tax will increase from £11,300 to £11,700 from 6 April 2018.
Stamp Duty will be abolished for first time buyers for their first £300,000 spent on properties up to £500,000.
The inheritance tax threshold will remain at £325,000 together with the additional residence nil rate band of £100,000.
In summary, there are no major surprises in the Budget. Overall, the budget provided some favourable changes for small businesses. Contractors and self employed will continue to be impacted by higher tax rates following the change in taxation of dividends last year and the tightening of IR35 tax rules in the public sector. Landlords continue to be worse off.
A more detailed analysis of the Budget will follow. Please monitor the website for updates. Belsize Accountancy are specialist accountants for contractors and small businesses.