We have pleasure in attaching our summary of the key announcements in the 2017 Spring Budget.
The Chancellor, Philip Hammond, used the word ‘fairness’ liberally in his hour-long Budget speech to the House of Commons. He announced measures to level the tax playing field, and reiterated that the income tax threshold and national living wage would increase to £11,500 and £7.50 an hour respectively.
Other points of interest include:
- The tax-free dividend allowance will be reduced from £5,000 to £2,000 from April 2018.
- Class 4 national insurance contributions for self-employed workers will increase to 10% in April 2018 and rise again, to 11%, from April 2019.
- A 25% charge has been introduced on transfers (subject to some exemptions) to qualifying recognised overseas pensions schemes (QROPS).
- Unincorporated businesses and landlords with a turnover above the VAT threshold will now be required to implement ‘Making Tax Digital’ from April 2018, with those below the VAT threshold having a year’s reprieve until April 2019. The start date for limited companies remains unchanged at April 2020.
We trust that you find the enclosed Budget Summary useful, and that it is a helpful basis for a discussion with us about your financial future.