Autumn Budget 2017
22 November 2017
The Chancellor was under pressure from all sides to make his second Budget speech of the year more dynamic than first. There were a number of important changes affecting businesses and individuals in the years ahead, however, public reaction to the Chancellor’s package of incremental measures may be muted at best.
Modestly improving Government finances have allowed the Chancellor to announce a number of spending and investment initiatives. Amongst these are positive changes for the housing market, first time buyers, younger workers and investing businesses. Further funding for these commitments will come from the large number of apparently small tax increases across a broad range of taxpayers.
What are the highlights?
- An SDLT reduction for first time buyers for properties up to £500,000, with exemption for properties up to £300,000
- Doubling both the limit on EIS investments for ‘knowledge intensive’ companies and the individual investor limits for investment in these companies - while removing relief for certain ‘low risk’ investments
- Increase the rate of R&D relief for large companies to 12%
- Consultation with a view to introducing income tax on certain royalty payments as well as proposals for wider measures affecting those operating within the digital economy
- Extension of joint and several VAT liability on online marketplaces
- Increases to VED and benefit in kind rates for certain diesel cars (not vans)
- A significant package of anti-avoidance measures as well as a number of consultation documents to be released in due course.
- For Northern Ireland, the following measures were announced;
- £660m spending increase for NI Executive.
- Start to negotiations for a Belfast City Deal.
- Reinforcement of commitment to NI CT Rate with announcement due in 2018-19 on implementing the regime (subject to conditions!).
- A review in early 2018 to consider impact of VAT and Air Passenger Duty on tourism in Northern Ireland.
BDO LLP will host a webinar at 12.30pm today (Thursday 23 November) where tax specialists will analyse and share insight on the Autumn Budget and how it may affect you and your business. You will also have the opportunity to pose your questions to our experts.
Read our full Autumn Budget Analysis below.