Phillip Hammond delivered an upbeat speech in which he stressed that the Government would look to the future, embracing the changes, challenges and opportunities it presents head on.
Mr Hammond set aside further funds to facilitate the Brexit negotiations and then chose to focus on the Government’s plans to invest in skills, infrastructure and homes to deliver a prosperous economy.
You can read our full summary report here, however below are the headlines we feel are most likely to impact on owner managers and their families.
- To encourage innovation a further £2.3billion was set aside for investment in R & D and the main R & D tax credit was increased to 12% for large companies
- To encourage start-ups and upscaling in the technology sector a fund in the British Business Bank will be seeded with £2.5billion of public money and EIS investment limits for knowledge intensive companies will be doubled to £2 million per investor
- To facilitate the clean air initiative, the existing diesel supplement in company car tax will rise by 1%. This does not apply to vans, only to cars
- There will be no benefit in kind for charging an electric car at work from next year
- A rise in national minimum wage to £7.83 from £7.50 in April 2018
- A rise in the personal allowance to £11,850 from April 2018
- A rise in the higher rate income tax threshold to £46,350 from April 2018
- There was no increase in the VAT threshold which remains at £85,000
- There were changes to the Business Rate Relief package announced in the 2016 Budget, bringing forward the planned switch from RPI to CPI to April 2018 and changing the revaluation system from every 5 years to every 3
- A series of measures committing £44 billion of capital funding, loans and guarantees to support the housing market were announced. This includes monies for the Home Builders Fund to encourage SME housebuilders to build again
- Stamp duty was abolished for all first time buyer purchases up to £300,000. For higher priced areas, the relief will be available on the first £300,000 of the purchase price of properties up to £500,000
We will analyse the details behind the headlines and issue our full summary report shortly. In the meantime, if you would like to discuss any aspect of the Budget with us, please do call us on 01332 365855.