The 2017 Autumn Budget took place, today (22 November 2017) and the following was announced by the Chancellor of the Exchequer Philip Hammond.

Corporation Tax

R&D expenditure credit (RDEC) to increase. The credit, also known as the ‘above the line credit’, is a standalone credit brought into account as a receipt in calculating profits. The current general rate is set as 11% of qualifying R&D expenditure. From 1 January 2018 the measure increases the rate of the RDEC from 11% to 12% Doubling of EIS and VCT investment limits for knowledge intensive companies. Both changes will apply from 6 April 2018 and will be introduced in the Finance Bill 2017-18

Capital gains tax indexation allowance will be frozen for companies with effect from 1 January 2018

Income Tax

National Living Wage will increase from £7.50 an hour to £7.83 an hour The government will legislate in Finance Bill 2018-19 to exempt employer-provided electricity from being taxed as a benefit in kind from April 2018.This will apply to electricity provided in workplace charging points for electric or hybrid cars owned by employees From April 2018, the personal allowance will increase to £11,850 and the higher rate tax threshold will increase to £46,350. The government had previously committed to raising the personal allowance to £12,500 and the higher rate tax threshold to £50,000 by 2020 The lifetime allowance for pensions will increase to £1,030,000 The Budget outlines proposals to extend capital gains tax (CGT) to all non-resident gains from April 2019. The measure taxes gains made by non-UK residents disposing of UK immoveable property, whether the disposal is made directly, or indirectly via a property-rich company or ‘envelope’. This includes gains on disposals of interest in commercial properties held directly or held indirectly, by interests in property-rich entities.

VAT

Unlike previous years there will be no increase in the registration (£85,000) and deregistration (£83,000) thresholds from 1 April 2018 through to April 2020. This will keep smaller businesses outside the VAT system

Stamp Duty

With effect from 22 November 2017 stamp duty will be abolished for first time buyers up to £300,000. For property purchases valued at between £300,000 and £500,000 the stamp duty rate will be 5% on the amount of the purchase price in excess of £300,000. As always, if you would like further advice or an informal chat with one of our expert tax and financial advisors, please contact either Paul Edwards or Lindsay Beeston at our Nantwich Afford Bond offices. Or use the Contact Us form on our website here.