Philip Hammond the Chancellor of the Exchequer presented today in the House of Commons his 2017 Budget. The most appealing point to come out of this was the fact that Stamp Duty has been abolished for first-time buyers purchasing properties worth up to £300,000. Please find a concise overview on the key points raised in the Budget.
Key Tax Changes:
Stamp Duty & Housing:
- Stamp duty to be abolished immediately for first-time buyers purchasing properties worth up to £300,000
- To help those in London and other expensive areas, the first £300,000 of the cost of a £500,000 purchase by all first-time buyers will be exempt from stamp duty
- 95% of all first-time buyers will benefit, with 80% not paying stamp duty
- 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
- It will not apply in Scotland unless Scottish government decides to follow suit
- £44bn in government support to boost construction to meet target of building 300,000 new homes a year by the middle of the next decade100% council tax premium to be levied on empty properties
- Compulsory purchase of land banked by developers for financial reasons
- Review into delays in developments given planning permission being taken forward
Personal taxation and wages:
- Tax-free personal allowance on income tax to rise to £11,850 in April 2018
- Higher-rate tax threshold to increase to £46,350
- Short-haul air passenger duty rates and long-haul economy rates to be frozen, paid for by an increase on premium-class tickets and on private jets
- National Living Wage to rise in April 2018 by 4.4%, from £7.50 an hour to £7.83.
- VAT threshold for small business to remain at £85,000 for two years
- £500m support for 5G mobile networks, fibre broadband and artificial intelligence
- £540m to support the growth of electric cars, including more charging points
- A further £2.3bn allocated for investment in research and development
- Rises in business rates to be pegged to CPI measure of inflation, not higher RPI
- Digital economy royalties relating to UK sales which are paid to a low-tax jurisdiction to be subject to income tax as part of tax avoidance clampdown. Expected to raise about £200m a year
If you require further information or interpretation on any of the points raised in this budget please contact a member of the team.