Yesterday the Chancellor gave his first ever Autumn Statement and in the statement confirmed it would also be his last. Following the Spring Budget of 2017 future Budgets will be in the Autumn of each year, the first of which will be delivered in Autumn of 2017. This should allow more time to plan for the changes announced.
In his speech the Chancellor made a number of announcements including;
- Income tax – Confirmed the objective to increase the personal allowance to £12,500 and the higher rate threshold to £50,000 by the end of the current Parliament in 2020.
- ISA limits will be increased to £20,000 from April 2017.
- Rise in insurance premium tax from 10% to 12% from June 2017.
- Increased anti avoidance legislation in relation to the National Insurance savings on some salary sacrifice schemes with exceptions for ultra-low emission cars, pensions, childcare and cycling.
- Significant changes to the VAT flat rate scheme for Service trades with limited costs.
- Corporation tax from April 2017 businesses will be able to use carried forward losses against profits from other income streams, rather than currently being restricted to profits of the same trade only.
- Partnerships – Legislation to be released to ensure fair allocation of profits for tax purposes.
For more information on how the changes may affect you, please contact us.