Yesterday, the Chancellor announced his second Budget of 2017. Among the key changes to note for this year are:
- The personal allowance will rise to £11,850 and the higher rate tax threshold for the UK will rise to £46,350 for 2018/19.
- Automatic enrolment pension minimum contributions increase significantly from 6 April 2018. Employer’s minimum contribution will increase from 1% to 2% with the total minimum contribution increasing to 5% (including 3% staff contribution).
- The inheritance tax residence nil rate band rises to £125,000 from 6 April 2018.
- Half of any interest tax relief for personal buy-to-let borrowing will be limited to a 20% tax credit from 2018/19.
- The VAT threshold will be frozen at £85,000 until March 2020.
- The diesel supplement for company cars will be increased from 3% to 4% from April 2018.
- The First time buyers of residential property outside Scotland will pay no stamp duty land tax on the first £300,000 of the purchase price for a home, provided its value does not exceed £500,000.
Download our budget summary to see the rest of the changes announced by Mr Hammond.
If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please contact us to discuss them.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.