QUICK FIRE AUTUMN BUDGET 2017 NEWS
To save you time, here’s a quick fire list of the major points, ask our team if you would like further details into the budget or any of the particular announcements.
Stamp Duty relief for first time buyers
In an attempt to help first-time buyers get on the property ladder and stimulate the housing market the chancellor announced that for property purchases completed on or after 22 November 2017 there would
be no SDLT payable if the purchase price is below £300,000.
This will be a permanent measure rather than a temporary holiday. Those claiming the relief will pay no SDLT on the first £300,000 of the consideration and 5% on any remainder. No relief will be available where the total consideration is more than £500,000. It should be noted that were a property is bought in joint names it must be the first property owned by all purchasers.
Personal Allowance & Higher Rate Limit Increase
The Chancellor reminded us that the government are committed to increasing the personal allowance to £12,500 in 2020 and the higher rate tax threshold to £50,000. However, the personal allowance for 2018/19 was only increased in line with inflation to £11,850 and the higher rate threshold to £46,350.
No change to tax or NI Rates
The basic rate of income tax and higher rate remain at 20% and 40% respectively and the 45% additional rate continues
to apply to income over £150,000.
VAT Registration Limit Frozen
The VAT registration limit normally increases in line with inflation each year, however the limit has been frozen at £85,000 until 1 April 2020. At the same time the deregistration limit remains at £83,000.
There had been rumours that the VAT threshold would be reduced so that more businesses would be required to charge VAT on their sales. The UK currently has the highest VAT registration threshold in Europe.
Changes to Diesel company cars
Company car benefits are based on CO2 emissions data which has encouraged employees to choose diesel cars due to lower CO2 emissions. The government is trying to reduce the number of diesel cars and will increase the current 3% diesel supplement to 4% from 6 April 2018.
As previously announced radical changes to the company car benefit rules are being introduced in 2020. The benefit in kind for electric cars and hybrid cars with a range of 130 miles or more on the electric motor is being reduced to just 2%. That means that the taxable benefit for such a car with a list price of £30,000 would be just £600 a year. Where the employer allows staff to charge their own electric car at work there will be no taxable benefit.
National living wage to increase next April
The national living wage paid to workers aged 25 or over will rise from £7.50/hour to £7.83/hour next April.
The 33p increase represents a 4.4% rise, meaning the UK’s lowest paid workers will see their pay rise above current levels of inflation. It amounts to an annual increase of about £600 for a full-time worker.
Ask our team if you would like further details into the budget or any of the particular announcements