WHAT WAS IN THE AU­TUMN BUD­GET?

EDP Norfolk - - Last Word In Property - 01603 630882 jon@nor­wichac­coun­tan­cy­ser­vices.co.uk www.nor­wichac­coun­tan­cy­ser­vices.co.uk

The Chan­cel­lor’s Au­tumn Bud­get de­liv­ered fo­cused very much on boost­ing the UK’s pro­duc­tiv­ity and build­ing greater self-suf­fi­ciency given the UK’s im­pend­ing exit from the EU. Some of the changes an­nounced are as fol­lows:

From April 2018, the per­sonal tax free al­lowance will rise from £11,500 to £11,850 and the ba­sic rate thresh­old (where the tax rate changes from 20% to 40%) will rise from £45,000 to £46,350. From April 2018, the Na­tional Liv­ing Wage will rise from £7.50 to £7.83 per hour.

Great news for first-time buy­ers; with im­me­di­ate ef­fect there is no stamp duty on the first £300,000 of the pur­chase price (sub­ject to a max­i­mum price of £500,000). For land­lords, yet an­other blow with the Chan­cel­lor an­nounc­ing new pow­ers to lo­cal au­thor­i­ties to charge a 100% coun­cil tax premium on empty prop­er­ties! He will also launch a con­sul­ta­tion on the bar­ri­ers to longer ten­an­cies in the pri­vate rented sec­tor and hinted at seek­ing ways to en­cour­age land­lords to of­fer these.

For those in­volved in prop­erty de­vel­op­ment and con­struc­tion, the Gov­ern­ment has said it is com­mit­ting £44 bil­lion to sup­port the hous­ing mar­ket with loans and guar­an­tees to boost con­struc­tion skills and ‘un­lock’ sites.

From Jan­uary 2018, cor­po­rate in­dex­a­tion of cap­i­tal gains will be frozen bring­ing cor­po­rate and per­sonal cap­i­tal gains in line, cre­at­ing a more level play­ing field.

The planned switch from the re­tail prices in­dex (RPI) to the con­sumer prices in­dex (CPI) in terms of cal­cu­lat­ing busi­ness rates re­lief will be brought for­ward 2 years to April 2018 which is es­ti­mated to save busi­nesses £2.3 bil­lion over the next five years.

The pro­posed fuel duty rise sched­uled for April 2018 has been can­celled which is good news but not so for com­pany cars us­ing diesel which will in­cur a 1% in­crease in com­pany car tax from April (white van men and women don’t worry - you’re ex­cluded!)

From April 2018, the Ve­hi­cle Ex­cise Duty (VED) rate for diesel cars will go up by one band. In con­trast, it would ap­pear fur­ther in­cen­tives are on the way for elec­tric cars in­clud­ing no ben­e­fits-in-kind for those charg­ing up their elec­tric cars at work!

…and fi­nally, the Chan­cel­lor promised to keep the VAT thresh­old at £85,000 for the next two years which, in my opin­ion, is too low as it sim­ply in­creases the ac­count­ing and com­pli­ance costs to small busi­nesses which are the back­bone of our econ­omy!

Jon Hook, the le­gal ex­pert from Nor­wich Ac­coun­tancy Ser­vices

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