14Dec
2017
2017
How The Autumn Budget Might Impact You
Murray McEwan / 0 Comments /Tax Rates and Allowances
- Everyone gets the benefit of an increased personal allowance. This means that no one pays tax until they earn over £11,850 per annum.
- The savings income zero percent starting band stays at £5,000 per annum for non-taxpayers, £1,000 for basic rate taxpayers and £500 for higher rate taxpayers
- The higher rate threshold for Income Tax is rising to £46,350 per annum or £43,500 if you are in Scotland.
- The dividend allowance is being slashed from £5,000 to £2,000. So if you have investment income you will be more likely to suffer dividend tax.
- The Capital Gains Tax annual exemption rises to £11,700 for individuals and £5,850 for trusts. You can make more profit before you are taxed.
Investments
- Maximum Enterprise Investment Scheme limits are being doubled (to £2,000,000) if the money is being placed in “knowledge intensive” companies.
- There’s no change in ISA thresholds (stays at £20,000 per person per year) but Junior ISAs go up to £4,260.
Stamp duty
In England and Wales first-time buyers will pay zero stamp duty on the first £300,000 of any home that costs up to £500,000. This means that:
- on a home worth less than £300,000, a first-time buyer will pay no stamp duty;
- if it is worth between £300,000 and £500,000 they’ll only pay the 5% stamp duty on the amount above £300,000;
- but if it is worth more than £500,000 they’ll have to pay 2% on the £125,000 between £125,000 and £250,000 and the full 5% on the amount above £250,000.
The Treasury estimates the move will take 80% of first-time buyers out of paying stamp duty altogether.
Cars
If you buy a new diesel car from 1 April next year, you’ll pay up to £500 more road tax in your first year of owning the vehicle.
Murray McEwan
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