Autumn Budget 2017
Below is a high-level summary of some of the key takeaways delivered by Chancellor Philip Hammond in the 2017 autumn budget that will be of interest to businesses and individuals.
When discussing the UK economy, the Chancellor Peter Hammond stated:
- The GDP growth forecast has been reduced to 1.5% in 2017, a downgrade from 2% forecast in March. Growth has also been cut to 1.4% in 2018 and 1.3% in both 2019 and 2020.
- A further £3bn set aside for Brexit preparations over the next two years, in addition to the £700m already invested.
- Borrowing is forecast to be £49.9bn this year – 8.4bn lower than forecast in the spring budget
Other key points:
- Stamp duty abolished immediately for first time buyers on homes up to £300,000. First time will be able to buy a house up to £500,000 and pay no stamp duty on the first £300,000.
- The National Living wage will rise 4.4% to £7.83 from £7.50 from April 2018.
- The Basic Rate income tax threshold will rise to £11,850 in April next year
- Higher Rate threshold to rise to £46,350
- Electric cars – unveils extra funds and tax incentives for electric car drivers
- Diesel cars - 1% increase in company car tax and from 2018 and increase in tax on cars that do not meet standards to go up by one band. The increase only applies to new diesel cars and does not penalise existing owners.
- Fuel duty rises cancelled.
- New rail card for people aged 26-30 to get a third off rail fares.
- £1,000 discount on rates for all pubs with a rateable value of less than £100,000 extended by a year.
- Duties on spirits, wine and beer frozen except high strength low quality alcohol from 2019.
- Increase on air passenger duty on premium class tickets.
- Tobacco will continue to rise at inflation plus 2%.
- Business rates - £2.3 billion cost to bring forward the change to CPI from RPI brought forward to 2018.
- £10 billion capital investment in frontline services over the course of parliament. £2.bn of extra funding for England
- Council will be able to charge a council tax premium on all empty properties.
- One million new homes on the Cambridge, Milton Keynes and Oxford corridor by 2020.
- £2.3 billion of investment in Research and development.
- Taxes for digital companies – all online market places will be jointly liable with sellers for VAT.
If any of the points mentioned above affect you, please contact us to discuss further.