Budget 2017 overview

With thanks to Albert Goodman chartered accountants, tax consultants & financial planners taken from their website here.

Budget 2017 overview

The main points announced and confirmed today were:

Individuals

  • Personal allowance confirmed to increase to £11,500 from April 2017 and £12,500 by 2020
  • Higher rate threshold to increase to £45,000 from April 2017 and £50,000 by 2020
  • Class 2 will still be abolished from April 2018
  • Class 4 national insurance on self-employed will increase to 10% from April 2018 and 11% from April 2019
  • Dividend allowance to be reduced from £5,000 to £2,000 from April 2018
  • For unincorporated businesses and landlords with turnover below VAT threshold, quarterly digital reporting to be delayed for one year
  • ISA allowance to increase to £20,000 from April 2017
  • National Living Wage to increase to £7.50 per hour from April 2017
  • NS&I bond introduced from April 2017 paying 2.2% on maximum investment of £3,000
  • Free childcare for parents of 3 and 4 year olds to be doubled to 30 hours per week
  • £2,000 promised towards the cost of childcare for under 12s
  • Taper relief for Universal Credits to decrease from 65% to 63% as expected 

Business tax

  • Corporation tax to fall to 19% from April 2017 and 17% from April 2020
  • Research and development tax credit to stay the same but administrative burden to decrease
  • Business rates revaluation procedure to be reformed before the next revaluation
  • Increase in business rates for businesses coming out of the small business rate relief to be capped at £50 per month during 2017/18
  • Pubs with a rateable value of less than £100,000 to receive £1,000 discount on business rates
  • Local authorities to be given funds to give discretionary relief from business rates to local businesses

 Tax avoidance

  • Plans to tackle tax abuse on foreign pensions
  • Introduction of VAT on roaming telecommunications outside of the EU
  • From July 2017, new penalties to be levied on consultants advising on tax avoidance arrangements which later fail

 Other

  • Sugar levy has brought in less money than expected but this will be invested in sports in schools
  • New minimum excise duty on cigarettes at a price of £7.35 per pack
  • No increase in alcohol duty other than those previously announced
  • Vehicle excise duty for hauliers and HGV Road User Levy remain frozen