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AUTUMN BUDGET SUMMARY-2017


The main highlights of the Autumn Budget are as follows,

Income Tax

The personal allowance will increase from £11,500 to £11,850 from 6 April 2018. The point at which higher rate of Income Tax will apply will increase from £45,000 to £46,350 from 6 April 2018. The Scottish Parliament will set the basic rate limit for Scotland.

Stamp Duty

The immediate abolition of stamp duty for first time buyers on the first £300,000 of properties up to £500,000 (not Scotland). The excess over £300,000 will be subject to tax at 5%. Where the property is worth more than £500,000 they won’t receive any relief. These changes will apply to transactions on or after 22nd November 2017, where the property is the main residence.

Pensions

The lifetime allowance for pensions will increase by Consumer Price Index (CPI) to £1,030,000 for 2018/19 tax year. No change to the annual allowance.

The state pension will increase by 3% from April 2018. This will mean an increase of £3.65 per week to £125.95 per week for the full basic state pension.

ISAs

The annual ISA subscription limit will remain at £20,000 from 2018/19 tax year. The limit for Junior ISAs and Child Trust Funds will increase by CPI to £4,260.

Capital Gains Tax

The annual exemption will be £11,700 for individuals and £5,850 for trusts in 2018/19 tax year. For corporate investors, indexation relief (a relief for inflation) will be frozen, based on the Retail Prices Index (RPI) for December 2017. Corporate investors disposing of directly held investments such as shares, and equity based collectives from 1 January 2018 will be impacted.

Enterprise Investment Schemes (EIS)

The maximum limit an individual can invest in an EIS will rise to £2,000,000 in any tax year (from £1,000,000), receiving income tax relief at 30%, provided the surplus over £1,000,000 is invested in one or more knowledge intensive companies.

Tax Treatment of Trusts

The Government will publish a consultation during 2018 on how to make the taxation of trusts simpler, fairer and more transparent.


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