Autumn Budget 2017 – Summary
Hammond drew a strong focus on property and housing and technology in his Budget, but his ambitious plans were overshadowed by the potential of a high Brexit bill and a slowdown in the UK’s economic prospects.
For business owners, the Budget has not brought many taxation changes and has left some commentators with a feeling of this being a missed opportunity to boost productivity and encourage investments.
That said, given the current political uncertainties generated post General Election and from the Brexit negotiations with the backdrop of declining economic forecasts, the Chancellor didn’t have too many rabbits or hats to pull them from!
- A further lowering of economic growth forecasts which are not now expected to exceed 1.5% pa until 2022.
- Stamp Duty abolished for most first-time buyers purchasing a house worth up to £300,000
- Creation of a £44 billion package of investment to increase the number new of homes by 300,00 pa
- £3 billion set aside to prepare the UK for Brexit
- An additional £2.8 billion funding package for the NHS in England over 3 years and a further £10 billion for capital investment in frontline services
- Personal allowance increasing to £11,850
- National Living Wage and National Minimum Wage to rise from April 2018
- Increase in VED for the most polluting diesel cars and further incentives for electric cars
- Air Passenger Duty, Fuel Duty and Duty on beer, wine and spirits are frozen
- An increase in spend in technology education (especially in maths and science)
- A £1.7 billion funding package to improve transport across England
Budget highlights for businesses
- Business rates to rise by CPI inflation from April 2018
- VAT registration threshold frozen for two years
- R&D tax credit increasing to 12% from January 2018
- Introduction of a tax on sales generated in the UK for digital retailers
- Pensions tax relief to remain unchanged with lifetime allowance for pensions to increase to £1.03m from next April
- Investment limit in the Enterprise Investment Scheme (EIS) for knowledge-intensive companies doubled
At HMT we work with businesses at all stages of their development from sourcing investment for growth through to exit. Managing investment into and generating financial returns from your business ownership is a key part of our advisory services to ambitious entrepreneurial business as well as structuring this in the most tax efficient manner.
For more information about the Autumn Budget and how it can affect you and your business, please contact one of our partners on 01491 579740.