The Chancellor has announced his 2nd UK Budget 2017, we’ve gathered the data and kept note, so you don’t have to. We’ve highlighted the areas of personal finance and business most appropriate for startups and businesses.
- First-time buyers purchasing a home up to the value of £300,000 stamp duty will be scrapped. £500,000 for homes in London – although this only applies to the first £300,000 – so duty will be paid on £200,000
- The National Living Wage, the minimum wage for the over-25s, will rise from £7.50 to £7.83 in April, Mr Hammond announces
- Tax-free personal allowance will rise to £11,850 in April 2017
- VAT threshold to remain at £85,000 for at least 2 more years.
- Higher-rate tax threshold will be increasing to £46,350
- Over 5 years £44bn funding commitment to support the housing market.
- Digital economy royalties relating to UK sales which are paid to low-tax jurisdictions will have an additional income tax from April 2019
- £500m extra funding for 5G mobile networks, fibre broadband and artificial intelligence
- £540m extra funding to support the growth of electric cars, including more charging points
- A further £2.3bn allocated for investment in research and development
- Rates on short-haul and long-haul air travel to be frozen. On the other hand, rates on premium travel and private jets will increase.
- Vehicle excise duty for diesel cars that do not meet the latest standards as outlined by the government to rise by one band in April 2018. However, this tax hike will not apply to van owners.
- Switch from retail prices index (RPI) to consumer prices index (CPI) is brought forward by two years for costing business rates, to April 2018
- Pubs with a rateable value of less than £100,000 will enjoy a £1,000 discount until March 2019 – labelled the “staircase tax”
That concludes the Budget 2017. Comments and discussions are always welcome.