Autumn Budget 2017 - How does it affect you?


Here are the key points from Wednesdays scintilatingly interesting Budget!

Stamp duty and housing

§ Stamp duty to be abolished immediately for first-time buyers purchasing properties worth up to £300,000. This is bound to apply to lots of people.

§ Reduction will apply immediately in England, Wales and Northern Ireland although the Welsh government will have to decide whether to continue it when stamp duty is devolved in April 2018

§ £44bn in overall government support for housing to meet target of building 300,000 new homes a year by the middle of the next decade

§ Councils given powers to charge 100% council tax premium on empty properties

§ Compulsory purchase of land banked by developers for financial reasons

§ New homelessness task force.  I am sure that will solve the problem!

Alcohol, tobacco and fuel

§ Duty on beer, wine, spirits and most ciders will be frozen, equating to 1p off a pint of beer and 6p of a typical bottle of wine

§ Fuel duty rise for petrol and diesel cars scheduled for April 2018 scrapped

§ Vehicle excise duty for cars, vans and motorcycles registered before April 2017 to rise by inflation

§ Vehicle excise duty for new diesel cars not meeting latest standards to rise by one band in April 2018

§ Existing diesel supplement in company car tax to rise by 1%

§ Proceeds to fund a new £220m clean air fund for pollution hotspots in England.  This should definitely solve English, if not global pollution levels.

 

Personal taxation and wages

§ Tax-free personal allowance on income tax to rise to £11,850 in line with inflation in April 2018

§ Higher-rate tax threshold to increase to £46,350

§ National Living Wage to rise in April 2018 by 4.4%, from £7.50 an hour to £7.83.

 

State of the Economy

§ Growth forecast for 2017 slashed from 2% to 1.5%

§ Forecasts for 2018, 2019, 2020 and 2021 revised down to 1.4%, 1.3%, 1.5% and 1.6% respectively.

§ Productivity growth revised down by an average of 0.7% a year up to 2023

§ Annual rate of CPI inflation forecast to fall from peak of 3% towards 2% target later this year

§ Another 600,000 people forecast to be in work by 2022

§ £3bn to be set aside over next two years to prepare UK for every possible outcome as UK leaves EU-Will £3Bn will fix the problem?

The state of the public finances

§ Annual government borrowing £49.9bn this year, £8.4bn lower than forecast in March

§ Borrowing forecast to fall in real terms in the subsequent five years from £39.5bn in 2018-19 to £25.6bn in 2022-23.

§ But projected borrowing has been revised up for 2019-2020, 2020-2021 and 2021-22, compared to March, due to the weaker economic outlook and expected lower tax yields

§ Public sector net borrowing forecast to fall from 3.8% of GDP last year to 2.4% this year, then 1.9%, 1.6%, 1.5% and 1.3% in subsequent years, reaching 1.1% in 2022-23.

§ Debt will peak at 86.5% of GDP this year, then fall to 86.4% next year; then 86.1%, 83.1% and 79.3% in subsequent years, reaching 79.1% in 2022-23.

 

Welfare and pensions

§ £1.5bn package to "address concerns" about the delivery of universal credit

Business and digital

§ VAT threshold for small business to remain at £85,000 for two years

§ £500m support for 5G mobile networks, full fibre broadband and artificial intelligence

§ £540m to support the growth of electric cars, including more charging points

§ A further £2.3bn allocated for investment in research and development

§ Rises in business rates to be pegged to CPI measure of inflation, not higher RPI, a cut of £2.3bn

§ Digital economy royalties relating to UK sales which are paid to a low-tax jurisdiction to be subject to income tax as part of tax avoidance clampdown. Expected to raise about £200m a year

§ Capital gains tax relief for overseas buyers of UK commercial property to be phased out, with exemptions for foreign pension funds

§ Charges on single-use plastic items to be looked at

§ £30m to develop digital skills distance learning courses

Education and health

§ £40m teacher training fund for underperforming schools in England. Worth £1,000 per teacher

§ 8,000 new computer science teachers to be recruited at cost of £84m and new National Centre for Computing to be set up

§ Secondary schools and sixth-form colleges to get £600 for each additional pupil taking maths or further maths at A-level and core maths at an expected cost of £177m

§ £2.8bn in extra funding for the NHS in England

§ £350m immediately to address pressures this winter, £1.6bn for 2018-19 and the remainder in 2019-20

§ £10bn capital investment fund for hospitals up to 2022

§ No extra funding for nurses pay but a guarantee that if future pay rises are recommended by independent body, there will be new money

Nations/infrastructure/transport/regions/science

§ £1.7bn city region transport fund, to be shared between six regions with elected mayors and other areas.  Unfortunately this is a drop in the ocean, particularly when compared to the tens of Billions being spent on rail and air links to improve transport to London and the South East.

 


  • Date posted:
    24/11/2017
  • Share:

View all articles

We have always received great service

Mr W from Corby

I would recommend him to everyone who needs an accountant and have done so with all my friends who have gone freelance

Stevie, Rushden

has an uncanny skill of identifying exactly what you need and explaining it in a manner that is clear, concise and understandable

David, Langham
  • Tax Refunds

    Think you've paid too much income tax or on are the wrong PAYE coding? You could be due a tax refund from HM Revenue & Customs ...

    more >

  • Self Assessment

    Need help to complete your Self Assessment Tax Return? We're here to help, fixed fee too.

    more >

  • Autumn Budget 2017 - How does it affect you?

    Here are the key points from Wednesdays scintilatingly interesting Budget!

  • read more

    latest news

© 2018 Arcus Taxation Accountants is the trading name of Arcus Associates Ltd. Registered in England & Wales Company No. 05065405.

privacy / cookies

website cms powered by csb internet

01572 770552 | 01664 483125