Philip Hammond has delivered his second budget as chancellor. Here are the key points of his speech.
Despite much speculation to the contrary, there will be no change to IR35 in the private sector.
VAT Threshold
Despite rumours of a reduction in the VAT registration threshold, the Chancellor announced this would remain at £85,000, which is a good news for small businesses to avoid extra paperwork.
Income Tax and Personal Allowance
The starting point of the Higher Rate tax band increases to £46,350, while the Personal Allowance goes up to £11,850 – both from April 2018.
National Living Wage to rise in April 2018 by 4.4%, from £7.50 an hour to £7.83.
From today, stamp duty will be abolished on properties up to £300,000. Also, the first £300,000 of the purchase price will be excluded from stamp duty when the purchase price is up to £500,000.
Reduction will apply immediately in England, Wales and Northern Ireland although the Welsh government will have to decide whether to continue it when stamp duty is devolved in April 2018
Philip Hammond has said that 95% of all first-time buyers will benefit, with 80% not paying stamp duty at all.
Capital gains tax relief for overseas buyers of UK commercial property to be phased out, with exemptions for foreign pension funds
We will keep you posted with further information next week.
Should you require further information please contact us on 01235 250011.
