A Budget Fit for the Future
The Chancellor has just sat down from delivering his first Autumn Budget. Based on the speech, the main tax points referred to were as follows:
Individuals
- The income tax personal allowance will increase to £11,850 from April 2018
- The higher rate tax threshold will increase to £46,350 from April 2018
- With effect from today stamp duty will be abolished for all first time buyers on properties up to £300,000, and on the first £300,000 for properties up to £500,000
- EIS investment limits will double for knowledge intensive investments
- From April 2018 charging electric vehicles at work will not be a benefit in kind
- The diesel supplement on company cars is to increase by 1%
- The National Living wage will rise from £7.50 to £7.83 from April 2018
- There will be an increase, for all ages, to the National Minimum Wage from April 2018
- A package of measures will be introduced to address concerns over the delivery of universal credits
Business Tax
- Indexation allowance on capital gains for companies will be frozen at January 2018
- Research and Development tax credits will increase to 12%
- The VAT threshold is to remain at its current level of £85,000 for the next two years
- All online market places will become jointly liable with sellers for VAT
- The planned uprating switch for business rates from RPI to CPI will be brought forward by two years to April 2018
- Local authorities will be given powers to charge a 100% premium on council tax on empty properties
- A further package of measures will be introduced to tackle tax avoidance and evasion
- From April 2018 income tax will be applied to royalties payable to low tax jurisdictions relating to digital retail sales in the UK
Duties and Miscellaneous
- VED on polluting diesels will increase from April 2018
- The planned fuel duty rise has been cancelled
- Tobacco duty will increase by inflation plus 2% as planned
- Wine, beer and spirits duties will be frozen
As normal these are just some of the key points form the Chancellors speech. Further details of these, and other measures not referred to in the speech, will be reported in Muras Matters over forthcoming weeks.
If you would like to discuss how any of these changes may affect you, please contact our Tax Director Jenny Marks.