2017 Autumn Budget at a Glance

23rd November 2017

2017 Autumn Budget Key Points

autumn budget 2017

Philip Hammond delivered the the Autumn Budget on Wednesday 22nd November 2017, the first one to be delivered at this time of year for 20 years.  

We have condensed the key points from the Budget into a quick and easy list to help you understand the changes that may impact you.

Business

  • VAT threshold for small business will remain at £85k for the next two years
  • Commitment to R&D and fostering innovation, with £2.3bn allocated for investment and R&D tax credits rising to 12%
  • Business rates revaluations will now take place every 3 years, rather than every 5, starting at the next revaluation, currently due in 2022
  • Digital economy will see income tax applied on royalties relating to UK sales which are paid to a low-tax jurisdiction from April 2019

 

Personal Tax

  • The national living wage will rise from £7.50 to £7.83 in April 2018
  • Tax-free personal allowance will rise to £11,850 in April 2018
  • Higher-rate tax threshold will increase to £46,350 in April 2018

 

Economy

  • Debt will peak at 86.5% of GDP this year, then fall to 86.4% next year; then 86.1%, 83.1% and 79.3% in subsequent years, reaching 79.1% in 2022-23
  • The UK GDP will be downgraded to 1.4%, 1.3% and 1.5% in subsequent years before rising to 1.6% in 2021-22
  • The growth forecast for 2017 has been downgraded from 2% to 1.5%
  • £3bn has been set aside for Brexit preparations

 

Housing

  • Stamp duty is to be abolished with immediate effect for first-time buyers buying properties worth up to £300k and for all buyers on the first £300k for properties with a purchase price of up to £500k
  • Local authorities will be given the ability to charge 100% council tax premiums on empty properties
  • An extra £2.7bn has been pledged to the Housing Infrastructure Fund, more than doubling it
  • Pledge to build 300,000 new homes a year by the mid-2020s. £44bn in capital loans and funding guarantees to support the market.

 

Automotive

  • £200m has been pledged by the Government, to be matched by private investment, to go into a new £400m fund for electric charging infrastructure
  • £100m has been put towards helping consumers with the cost of purchasing a new battery electric vehicle
  • Fuel duty rise for petrol and diesel cars scheduled for April 2018 has been cancelled. The freeze is expected to save a typical driver £160 a year
  • Vehicle excise duty for diesel cars to rise by one band in April 2018. Applicable to cars which do not meet the newest standards.  This is not applicable to van owners.
  • Existing diesel supplement in company car tax is to rise by 1%

 

Education

  • A £40m teacher training fund has been proposed for underperforming schools in England
  • 8,000 new computer science teachers are to be recruited
  • A budget of £600 per pupil taking maths or further maths at A-level for secondary schools and 6th form colleges

 

Health and social care

  • £10bn capital investment fund for hospitals
  • £2.8bn in extra funding for the NHS in England

If you would like to talk to us about any of the proposed changes within the Autumn Budget 2017 announcement, please contact us to speak to one of our friendly team.

Chartered Accountants in Sunderland, offering expertise on everything from Tax and Business Planning,
to Accounts and VAT.