Budget 2017 overview

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

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