INSIGHTS

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Autumn Budget 2017


Chancellor Philip Hammond delivered the Autumn Budget to Parliament on Wednesday 22nd November. We have summarised below the key points relating to personal tax measures to help explain how you might be affected.

Income Tax
For 2018/19  Personal Allowance to be raised from £11,500 to £11,850. The basic rate (20%) tax band will increase from £33,500 to £34,500.
 
Capital Gains Tax
The introduction of the 30 day payment window between a capital gain arising on the sale of a residential property and payment will be deferred until April 2020.
 
Trusts
The government will publish a consultation in 2018 on how to make the taxation of trusts simpler, fairer and more transparent.
 
Pensions
The life time allowance for pension savings will increase in line with inflation to £1,030,000 for 2018/19.
 
ISA’s
The annual subscription limit for 2018/19 will remain unchanged at £20,000. The annual subscription limit for Junior ISA’s and Child Trust Funds for 2018/19 will be updated in line with CPI to £4,260.
 
Venture Capital Schemes
From 6 April 2018: Measures will be introduced for EIS, SEIS and VCTs to exclude tax-motivated investments, where the tax relief provides most of the return for an investor with limited risk to the original investment.  HMRC have for some time disliked investments often labelled as “planned exit” where the aim is solely to limit investment relief, exit as soon as possible after the qualifying period and where most of the return comes from the upfront Income Tax relief.

To encourage investment in knowledge-intensive companies the annual investment limit for individuals will be increased to £2m provided that any amount over £1m (current limit) is invested in one or more knowledge-intensive companies. The annual tax advantaged investment limit in knowledge intensive companies will also be doubled to £10m. It is estimated that 4,000 individual investors are likely to benefit from this measure annually.
 
Stamp Duty Land Tax
First time buyers will not be liable to Stamp Duty Land Tax on the first £300,000 of the purchase price. The relief will not apply to purchases of properties worth over £500,000.
 
Sundry Measures
Certificates of Tax Deposit – Government will close the CTD scheme for new certificates on and after today. Existing certificates will continue to be honoured for six years.

Late Submission Penalties and Late Payment Interest – the government will reform the penalty system for late or missing tax returns, adopting a new points based approach.

The above summary is provided to highlight how some elements of the Chancellor’s 2017 Budget might affect you.  Full details of the Budget can be found here.


Weatherbys Private Bank is a trading name of Weatherbys Bank Ltd. Weatherbys Bank Ltd is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Registered no: 204571. Weatherbys Bank Ltd is registered in England. Registered no: 2943300. Registered Office: Sanders Road, Wellingborough, Northamptonshire NN8 4BX.

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Published Wednesday 22nd November, 2017


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