27 November 2017
Investment Services
The Economy
The Chancellor started on a positive note, saying the economy continued to grow and create jobs. However, he said productivity levels remained “stubbornly flat”, with growth until 2021 expected to be lower than was predicted in March.
The Office for Budget Responsibility predicts the economy will grow by 1.5% this year, dropping to 1.3% by 2020 and then rising to 1.5% again in 2012. This is the first time in a generation that growth is forecast below 2% every year.
Stamp Duty
Stamp Duty is to be immediately abolished for first-time buyers purchasing properties worth up to £300,000, in England, Wales and Northern Ireland. This will save buyers up to £5,000.
In London and other expensive areas, the first £300,000 of a £500,000 purchase will be exempt, with the remaining £200,00 incurring 5% Stamp Duty.
Taxation
In April 2018, the tax-free personal allowance on income tax will rise to £11.850, in line with inflation. The higher-rate tax threshold will also increase to £46,350.
The VAT registration threshold will not reduce and, from April 2019, the UK will apply income tax to royalties relating to digital retail sales in the UK. The planned uprating switch from RPI to CPI has been brought forward two years, to 2018, giving small firms help with business rates costs.
Pensions
For those receiving the basic State Pension, the weekly amount will rise by 3% in April 2018, to £125.95. Those covered under the new State Pension will see the full level increase from £159.55 a week to £164.35.
The lifetime allowance for pension savings will increase from £1 million to £1,030,000 for 2018/19. There was no change to the annual allowance, which will remain at £40,000 for the 2018/19 tax year.
Investments
While experts predicted the Enterprise Investment Scheme (EIS) could be hit in the Autumn Budget with cuts to tax relief, the Chancellor instead outlined various measures to support research and development and technical innovation.
These measures include doubling the EIS investment limits for ‘knowledge-intensive’ companies, from £1 million to £2 million, as long as any amount over £1 million is invested in one or more knowledge-intensive companies. The full investment would see individual investors receiving a potential 30% tax relief, of £600,000.
The Capital Gains Tax exempt amount will also see a slight boost from April, rising from £11,300 to £11,700.
Other Announcements
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