Stirling House Autumn Budget 2017 Summary:
This was Philip Hammond’s first Autumn Budget after changing the format from the usual Spring Budget & Autumn Statement earlier this year. Below we have summarised some of the key points:
The Personal Allowance will be increasing to £11,850 from 6th April 2018.
The Higher Rate Threshold for Income Tax will also increase to £46,350.
These are both heading towards the Government’s long standing target of a £12,500 Personal Allowance & £50,000 Higher Rate Threshold by 2020/21.
New Stamp Duty Land Tax rules were introduced so that first-time buyers of property get relief from Stamp Duty on properties valued up to £500,000. As a first-time buyer you will not pay any Stamp Duty on a property valued up to £300,000. Anything over £300,000 and up to £500,000 will pay no Stamp Duty on the first £300,000 and 5% on any amount up to £500,000. Any purchase above £500,000 will be subject to Stamp Duty at the standard rules & rates.
The ISA limit for 2018/19 will remain unchanged at £20,000.
Limits for Junior ISAs & Child Trust Funds will increase by CPI up to £4,260.
No significant changes to pensions which many expected from the rumours circling in the Financial Press prior to the release of this Budget.
Pension Freedom rules & Pension Tax Relief were left unchanged but there was an increase to the Pensions Lifetime Allowance by the rate of CPI. This now stands at £1,030,000.
The Dividend allowance will be reducing to £2,000 from the current £5,000 available in the 2018/19 Tax Year. Any Dividends received in excess of this will be liable to Income Tax of 7.5% within the Basic Rate, 32.5% Higher Rate % 38.1% for the Additional Rate.