Autumn Budget Highlights

When the Autumn Budget is released the amount of information provided can often be overwhelming. So here you’ll find the important highlights that could affect your business:

  • From April 2018, personal allowance will rise in accordance with inflation, from £11,500 to £11,850.
  • From April 2018, the basic rate threshold will be increased to £34,500, meaning an individual can earn up to £46,350 without paying higher rate tax.
  • For the financial year starting April 2018 and 2019, corporation tax is set at 19%, reducing to 18% from 2020.
  • For larger companies, R&D expenditure credit will be increased from 11% to 12%.

Affecting those who sell assets:

  • From 1st January 2018, the indexation allowance for companies selling assets will be frozen. This means when calculating chargeable gains, relief will not be available to count for inflation after this date.

Affecting Home Buyers / Estate Agents:

  • Stamp Duty Land Tax (SDLT) will be abolished on homes under £300,000 for first time buyers, effectively immediately.
  • The additional property 3% surcharge for SDLT will have new rules applied to close some anti-avoidance loopholes, provide relief to those in unintended consequences, and if the property is sold to a spouse it will be disregarded.

Affecting businesses with staff:

  • From April 2018 the National Living Wage will increase for those aged 25 and over, from £7.50 per hour, to £7.83.
  • The National Minimum Wage will also increase with: Apprentices getting £3.70 per hour; 16 and 17 year olds getting £4.20 per hour; 18 to 20 year olds getting £5.90 per hour; and 21 to 24 year olds getting £7.38 per hour.

Affecting those who pay business rates:

  • From April 2018, business rates will increase by CPI rather than RPI.
  • Revaluations of business rates will take place every 3 years, as opposed to every 5 years. This will commence after the next revaluation, currently due in 2022.