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Posted on 8th March 2017

Spring Budget 2017

When discussing the UK economy, the Chancellor Peter Hammond stated the following:

  • This is the last Spring Budget
  • The UK was the second fastest growing economy than any other major economy in the world apart from Germany
  • Building foundations for a stronger, fairer and more global Britain
  • Inflation is forecast at 2.4% for 2017 and 2.3% for 2018
  • The GDP growth forecast for 2017 is 2% and 1.6% for 2018

Following the spring 2017 budget, here is a summary of the key points:

  • The tax free dividend allowance will reduce from £5,000 to £2,000 in April 2018
  • Corporation tax will fall to 17% in 2020 the lowest in the G20
  • From April 2017, the ISA allowance will rise from £15,000 to £20,000
  • Making tax digital - The introduction of quarterly reporting for small business has been delayed for one year to April 2019
  • There is an extra cut of £435 million to business rates. There were 3 measures to help businesses that are struggling with the revaluation of rates:
    1. Any business coming out of small business rate relief will benefit from an extra cap – meaning their rates will not increase by more than £50 a month
    2. £1,000 discount on rates for all pubs with a rateable value of less £100,000 – 90% of all pubs
    3. £300 Million will be available to councils for them to provide discretionary relief for any business facing a large increase to rates
  • New NS & I bond from April 2017 which pays 2.2% interest on deposits up to £3,000
  • Self employed Class 4 National Insurance Contributions will increase from 9% to 10% in 2018 and further increase of 1% in 2019. This breaks the Conservatives 2015 election pledge.
  • Class 2 National Insurance Contributions to be abolished in 2018
  • Personal tax allowance to increase as planned to £11,500 this year and to £12,500 by 2020
  • Minimum wage to increase to £7.50 per hour from April 2017
  • Vehicle excise duty to remain frozen for another year
  • No changes to previously planned duties on alcohol and tobacco
  • Minimum excise of £7.35 per packet of cigarettes
  • Universal Credit taper rate to reduce from 65% to 63% in April 2017
  • £2 billion additional funding over next 3 years for Adult Social care
  • £100 million additional funding to place more GP’s in Accident and Emergency Departments by next winter

If any of the points mentioned above affect you, please contact our Private Client team to discuss further.

Published by

Christopher Eriksson-Lee

Partner

T: 01622 776465

Email Christopher

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