Huw Roberts Budget Special Newsletter
Cylchlythyr y Gyllideb
There are no significant changes arising from the Budget which will cause any great anxiety to clients.
Here is a brief summary.
- The Personal Tax Allowance is increasing from £11,500 to £11,850 which will mean an increase of £70 of take home pay for all basic rate tax payers. The higher rate of tax increases from £45,000 to £46,350, which is an increase in take home pay of £340 for 40% tax payers.
- The Dividend Allowance has been maintained @ £5,000 for 2017 – 2018, but will decrease to £2,000 in 2018-2019, a tax increase of £150.
- The Stamp Duty Changes apply to first time purchasers of property, with a Stamp Duty band of 0 up to £300,000. In practice as the first £125,000 was already exempt, an individual purchasing a property for £150,000 will be £500 better off, a £200,000 property will be £1,500 better off, and with a first time property at a level of £300,000 the purchaser will be £5,000 better off. However, in practice the gains may be smaller as the sellers of the property may ask a higher selling price. All purchasers must be first time buyers for this benefit to be received.
- Buyers of new Diesel cars will face a further one off increase on the purchase of new vehicles and company car drivers will pay more for diesel cars as a benefit in kind.
- There is a move to get large tech groups such as Apple and Amazon to pay more tax in the UK by taxing royalties sent to low cost countries and charging VAT for sellers who have not previously declared VAT in the UK.
- Policies untouched by the Budget include no change to University Tuition Fees, no reduction in the VAT threshold and no major changes for self-employed workers.
- There are small increases to the State pension, National Insurance Payment Thresholds and the Capital Gains Tax Annual Exemption