Understanding the finance implications from the Autumn Budget 2017
With the Budget shifting from Spring to Autumn this year the backdrop was one of falling leaves rather than blooming daffodils.
The Chancellor was relentlessly upbeat about the prospects for UK PLC, irrespective of any Brexit related challenges.
To help understand the key implications that individuals should know about, I’ve detailed the key items announced today:
New Stamp Duty exemption
There is new Stamp Duty exemption for first time buyers buying a home costing less than £300,000 and savings of up to £5,000 for those buying a home costing less than £500,000. This will help 95% of all first time buyers and 80% of first time buyers will achieve exemption. A further £10 billion of Government funding is to be made available in the Help to Buy equity loan scheme.
The anticipated reduction in the VAT registration threshold didn’t happen which is good news for those who use non registered suppliers and thereby avoid a 20% VAT charge.
Tax free allowance
Tax free allowances for all to increase next April from £11,500 to £11,850, making further progress towards the Government’s promise that we can all receive £12,500 of annual income tax free by 2020/21.
Fuel duty frozen
Fuel duty frozen yet again but extra road tax payable for those buying new diesel cars and further “environment friendly” tax proposals to reduce plastic waste.
New discount Railcard
New discount Railcard for those aged between 26 and 30 from April 2018, at a cost of £30 p.a. which will be available to 4.5 million…though only for off-peak travel.
But not as many announcements addressing intergenerational fairness concerns as were expected with nothing of substance on inheritance tax, pensions or National Insurance.
Personal finance advice
In light of the Autumn Budget announcements if you need accountancy advice or support, contact our team here.