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Autumn Budget 2017 - Key Points - Crowther Image

Autumn Statement 2017 – key points

 

The tax-free personal allowance will rise

The personal allowance will rise from £11,500 to £11,850. This means that in 2018-19, a typical taxpayer will pay £1,075 less income tax than in 2010-11. Higher-rate tax threshold to increase to £46,350

The National Living Wage and the National Minimum Wage will increase from April 2018

The National Living Wage for those aged 25 and over will increase from £7.50 per hour to £7.83 per hour from April 2018. The National Minimum Wage will also increase:

 21 – 24 year olds  18 – 20 year olds  16 and 17 year olds  Apprentices
 £7.38 per hour  £5.90 per hour  £4.20 per hour  £3.70 per hour

Corporation tax

The R&D expenditure credit will increase from 11% to 12%

Pensions and savings

The ISA annual subscription limit for 2018-19 will remain unchanged at £20,000. The annual subscription limit for Junior ISAs and Child Trust Funds for 2018-19 will be uprated in line with CPI to £4,260.

Abolishing stamp duty land tax (SDLT) on homes under £300,000 for first-time buyers from 22 November

First-time buyers of homes worth between £300,000 and £500,000 will not pay stamp duty on the first £300,000. They will pay the normal rates of stamp duty on the price above that.

Duty

Fuel duty will remain frozen, duty on beer, wine, cider and spirits will also be frozen The duty on cigarettes will increase by 2% above inflation. Hand-rolling tobacco duty will increase by 3% above inflation

New tax relief

The government is introducing a new tax relief to help those who buy and sell on a small scale, such as on internet auction sites or at car boot sales. From April 2017, the first £1,000 a year of income will not be taxable. There will be similar relief for the first £1,000 of property income, such as from letting your room via a website.

Business rates

Business Rates will rise by CPI from April 2018. Business rates revaluations will take place every 3 years, rather than every 5 years, starting after the next revaluation, currently due in 2022 Lifetime allowance for pensions – The lifetime allowance for pension savings will increase in line with CPI, rising to £1,030,000 for 2018-19.

 Marriage Allowance

The marriage allowance enables individuals to transfer 10% of their personal allowance to their spouse or civil partner where the recipient and the transferee is not a higher or additional rate taxpayer. An amendment to this now enables claims on behalf of deceased spouses and civil partners, and the backdating of these claims by up to four years.

Council tax

Councils have been given powers to charge 100% council tax premium on empty properties, aimed to dissuade property investors from allowing homes to sit empty while many struggles for somewhere to live.    

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