In Philip Hammond’s first Autumn Budget, the second Budget of 2017, the Chancellor of the Exchequer promised that his Government would, “invest to secure a bright future for Britain”.
Despite much hype in the run up, the actual Budget was to some extent a non event, with no major changes.
The abolition of stamp duty for most first-time buyers was the most prominent announcement. This, alongside a couple of other key announcements, are likely to impact on our clients.
Within his budget, Philip Hammond caught many by surprise by announcing the abolition of stamp duty for first-time buyers on homes up to £300,000 and in very high-priced areas, such as London, offering a stamp-duty exemption on the first £300,000 purchase price on properties valued up to £500,000; the additional amount up to £200,000 will incur 5% duty. To take effect immediately in England, Wales and Northern Ireland. It will not apply to Scotland, unless they decide to adopt the measure.
On the tax front, the income tax personal allowance will be increased to £11,850 with effect from April 2018, with the higher rate tax band threshold increasing to £46,350. (Rates and bands may differ in Scotland, where a Draft Budget is due on 14 December.)
SAVINGS & INVESTMENTS
The ISA savings allowance for 2018/19 will remain at £20,000. The allowance for JISAs and Child Trust Funds will be uprated in line with CPI to £4,260.
For the first time in seven years, April 2018 will see the pension lifetime allowance increase, by £30,000 to £1,030,000.
The basic State Pension will increase by the triple-lock formula. Therefore, April 2018 will see it rising by 3% (£3.65 per week) – for the full basic pension. The full new State Pension will, likewise increase via the triple lock by £4.80 a week.
If you have any questions about the Autumn Budget 2017 please do call us on 0161 718 8328.