Autumn Budget 2017
Phillip Hammond faced a difficult task in this budget. He was obviously reluctant to abandon the fiscal prudence that he and his predecessor, George Osborne, truly believe in. However, he was under considerable pressure to do something to stimulate the economy and relax the 'austerity' measures that are in danger of making the Conservative party unelectable for large swathes of the population. His last budget was percieved as a bit of a disaster, with a number of measures being quickly abandoned. He could not afford that to happen again.
So, from a tax point of view, it was mostly good news.
The increase in personal allowance to £11,850 and higher rate threshold to £46,350 will come in as previously announced in April 2018. Corporation tax stays at 19% and is still planned to reduce to 17% from April 2020. Stamp duty relief for first time buyers will be very helpful. Certainly no give-aways for higher rate taxpayers, but we were hardly expecting that!
The only genuine increase that I could spot is the abolition of capital gains tax indexation relief for companies which allows them to avoid paying tax on inflationary gains on assets such as property, which is fair enough as it levels the playing field between companies and individuals.
For the full tax briefing report click for PDF.