The Chancellor, Philip Hammond, delivered his first Autumn Budget to Parliament last week. We’ve been paying close attention to the announcements and how they will impact on our clients. In this article, we’ve provided an overview of the main points that we hope that you find helpful.
From 6th April 2018, the lifetime allowance will be increased by 3%,
Life assurance and overseas pension schemes
From April 2019, tax relief on employer premiums paid to provide life assurance cover, or to certain overseas pension schemes, is to be modernised to cover policies where an employee nominates either an individual or a registered charity as their beneficiary.
Master trust tax registration
As announced in the Chancellor’s Spring Budget, from 6th April 2018, HMRC will be given new powers to register and de-register master trust schemes and schemes for dormant companies,
The weekly state pension will rise by 3% in April 2018 to £125.95, if you receive the basic state pension. People covered under the new state pension will see the full level of new state pension increase from £159.55 per week to £164.35 a week.
The personal income tax allowance will rise to £11,850 in 2018/19. The higher rate threshold will increase to £46,350 and the zero percent starting band for savings income will remain at £5,000.
This ISA threshold will increase to £20,000 in the 2018/19 tax year. For Junior ISAs, the threshold will rise in line with the Consumer Prices Index (CPI) to £4,260.
Capital gains tax
The annual exemption will be £11,700 for individuals and £5,850 for trusts in the 2018/19 tax year.
Stamp Duty Land Tax (not applicable in Scotland)
There will be no Stamp Duty Land Tax for first-time buyers on properties valued at up to £300,000. If a first-time buyer purchases a property valued between £300,001 and £500,000, they won’t be taxed on the first £300,000 and will be subject to tax at 5% on the excess. Where the property is worth more than £500,000, there won’t be any relief. These changes will apply to transactions on or after 22 November 2017, where the property will be the buyer’s main residence.
Tax treatment of trusts
A consultation will be published in 2018 looking at ways to make the tax treatment of trusts simpler, fairer and more transparent.
Enterprise Investment Schemes (EIS)
Currently an individual can invest up to £1,000,000 in any tax year in an EIS, receiving income tax relief at 30%. This maximum limit will rise to £2,000,000 in any tax year, provided the surplus over £1,000,000 is invested in one or more knowledge intensive companies.
Get in touch to find out more about how the 2017 Autumn Budget will affect you
To find out more about how these latest announcements may impact on your financial position, please telephone us on 01772 729742 or alternatively, simply fill out our online enquiry form to arrange a meeting with an adviser at Springfield Financial Services.
The information provided is based on our current understanding of the 2017 Autumn Budget and associated documents and may be subject to alteration as a result of changes in legislation or practice.