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The Autumn Budget 2017
22 November 2017
The abolition of the stamp duty for first-time buyers on the first £300,000, the rise in the national minimum wage to £7.83, and the freeze on the VAT registration threshold will probably get most of the newspaper headlines from Philip Hammond’s latest Budget.
Many commentators also felt the chancellor may have been watching quite a lot of TV recently, with his Top Gear and Blue Planet references. Even Lewis Hamilton got a mention.
Hammond said that we live in the world that is on the brink of a technological revolution and he wanted to embrace the future and build on the government’s success story.
He also stressed he wanted to provide “more maths for everyone”! Sweet
So what were the key points…
From April 2018 the personal tax-free allowance will rise to £11,800.
The higher-rate threshold to rise to £46,350.
From April the national living wage will rise by 4.4%, from £7.50 an hour to £7.83. The government has also accepted the Low Pay Commission’s recommendations on National Minimum Wage rates.
There will be a new railcard for those aged 26-30, giving 4.5m more young people a third of their rail fares.
Changes for Business
VAT threshold for small businesses will remain at £85,000 for the next two years.
Freeze in the corporation tax indexation allowance.
Rises in business rates to be pegged to CPI measure of inflation, not RPI.
Business rates – the so-called staircase tax: businesses affected by the Supreme Court ruling will be able to have their original rates bill reinstated, with the relief backdated.
There will be an investigate into how the tax system and charges on single-use plastic items can reduce waste and keep plastic out of our seas.
From April 2019 the UK will apply income tax to royalties relating to digital retail sales in the UK.
Online retailers will become jointly liable, along with the sellers for VAT.
From April 2018 the first year VED rate for diesel cars that don’t meet the latest standards will go up by one band. This will not apply for vans, lorries or
For companies, the indexation allowance applied to capital gains will no longer apply after January 2018. Only gains up to that date will be protected from inflationary increase.
Extra £20m to support FE colleges introduction of the T-levels.
The government has pledged additional funding (around £30m) to boost digital skills, particularly digital skills distance learning courses.
Stamp duty has been abolished immediately for first-time home buyers purchasing properties worth up to £300,000. In London and other more expenses areas, the first £300,000 of the cost of a purchase by first-time buyers up to £500,000 will also be exempt from the duty.
There will be a 100% council tax premium on empty properties.
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