If you’ve been trying to follow the news coverage for the Autumn Budget, you might have noticed it isn’t immediately clear what changes are relevant to YOU, with the information buried under political trash-talking. One of the most popular reviews of the Budget is that it’s boring, but don’t be misled! Boring just means there weren’t many surprises, it doesn’t mean these key points won’t impact you!
Increases to business rates will switch from the RPI (Retail Price Index) measure of inflation to CPI (Consumer Price Index) from April 2018. This is 2 years earlier than planned.
Revaluation of business rates will take place every 3 years after the next revaluation.
The Vat threshold will remain at £85,000 for the next 2 years.
Online Market places and sellers will be jointly liable for VAT.
The main rate for research and development tax credit will increase to 12% from April 2018.
No change with the indexation allowance for capital gains tax to be frozen. Companies will be able to get relief for inflation until January 2018.
Investment limits for knowledge-intensive companies will be doubled.
Stamp Duty Land Tax
Stamp duty to be abolished with immediate effect on all residential transactions worth up to £300,000 for first-time buyers only.
For first-time buyers in London and other expensive areas, the first £300,000 on all residential transactions worth up to £500,000 will be exempt from stamp duty.
The tax-free basic-rate threshold will increase to £11,850, while the higher-rate threshold rises to £46,350 from April 2018.
National Living Wage
National living wage increases by 4.4% from £7.50 an hour to £7.83 an hour from April 2018.
Motor, Sin Taxes, and Regional
Vehicle excise duty on the most polluting cars will go up by 1 band from April 2018. The diesel supplement will increase by 1%. White Vans are not affected by these changes.
The government will invest £550 million into electric vehicles, including funding for charging research and developments. There will be no P11D benefit in kind on any electricity provided by your employer to charge your electric car.
Duties on beer, wine, spirits and some ciders will be frozen. The government will legislate to increase duty on high-strength alcohol, such as white cider, from 2019.
Tobacco will increase at inflation plus 2%, while there will be an additional 1% on hand-rolling tobacco this year.
Regions and Nations
A promised £1.2 billion for the Welsh Government and more than £650 million for the Northern Ireland Executive.