Carousel_Arrow Chat icon_cookie IHT_trust_wills IR35 Combined Shape 2 Group 10 Login Mobile Menu Share Share Email SubMenuMobile Group 9 VAT View_Gallery View_List capital_allow Triangle 2 Copy Close construction cyberpro employment_tax_shares emplyer_solutions entrepreneurs_corps fee_protect Group 7 grant_fund Group i_Clock i_Consult i_Done i_Eligibility_Tick i_Enter i_Filter i_HMRC i_Negative i_Play i_Plus i_Reset i_Support_Legal i_Support_TaxDesk i_Support_VAT i_Tick noun_marketing_1872083 noun_online_2126759 i_download i_meet Group Copy 24 Group 18 noun_electrical_1240755 copy noun_Technology_2125422 noun_Science_2031115 i_tick_bullet_block international_tax patent_box private_client property_sdlt r_and_d reliefs_incentives Search specialist_tax status tax_indemnity valuation YouTube
Markel Tax

22 Nov 2017

Autumn Budget 2017: Highlights

Today Philip Hammond delivered the first Autumn Budget reporting on an economy that “continues to grow, continues to create more jobs then ever before and continues to confound those who seek to talk it down”. It was light on tax content, but with some significant announcements. 

We have highlighted below some of the main headlines and, as we work through the detail, we will update our website so keep visiting the site throughout the afternoon.

Research & Development

An additional £2.3bn will be made available to fund an increase in the research & development tax credit to 12%. This will take effect from 1st January 2018.

Enterprise Investment Scheme

The limit for investment in EIS companies will increase from £1m to £2m. Relief will be restricted, however, to riskier businesses through the application of anti-avoidance measures.

Personal Tax

The personal allowance will be increased to £11,850 and the higher rate band to £46,350. This represents a 3% increase being the standard CPI increase for the year. This measure should result in £1,075 less tax being paid by most taxpayers than in 2010/11.

Indexation Relief

There has been an anomaly for some years in that indexation allowance is available on the disposal of assets by companies but not for individuals. To correct this anomaly indexation for companies will be frozen at 1st January 2018.

The Digital Economy

From April 2019 income tax will be imposed on royalties paid to entities resident in a tax haven which relate to UK sales. This measure is estimated to bring in £200m pa so may be a political gesture more than a revenue gathering exercise but it reinforces the UK’s position at the forefront of tax measures in this area.

VAT

There are a number of announcements around VAT. Contrary to rumours the Chancellor did not reduce the VAT threshold which has been frozen for two years. There will, however, be a consultation on VAT measures to encourage companies to grow.

It was also announced that joint and several liability for online market places and sellers would be introduced from the Spring.  

Stamp Duty Land Tax

The headline announcement was the abolition of SDLT for first time buyers of properties up to £300k. First time buyers of properties up to £500k will also benefit from the first £300k not being subject to SDLT but there appears to be no relief for properties above £500k. This measure will grab all the headlines in the press tomorrow but, as always, it will be necessary to see the detail of how this measure will work in practice.

Next article in series

22 Nov 2017

Autumn Budget 2017: Master trust tax registration