Budget time again
So….that was it. A Budget.
Skipping over all the macro technical stuff, getting down to things that affect people at the sharp end, most personal and company tax rates etc were already set by previous Budgets.
However, the personal allowance will increase in April 2018 to £11,850 and the 40% higher tax rate threshold rises to £46,350. (NOT in Scotland)
One change of note is the Capital Gains “indexation allowance” for companies will be frozen as at January 2018.
The VAT registration threshold is the highest in Europe at £85,000. It remains at that figure for two years.
Enterprise investment Scheme incentives are to be increased for tech start up companies.
Further improvements announced to business rates including steps to mitigate the colloquially named “Staircase” charge. That said there was no announcement about how management of the so-called rates relief already in place will improved.
With effect from April 2019 digital businesses paying royalties to a low tax jurisdiction will be subject to income tax on those payments here in the UK.
On housing there was an announcement to “increase the supply of land” to build more homes, some figures proposed on future building but I sort of switched off there for a moment with a feeling of déjà vu. Previous similar pledges have all failed abysmally so why this one should be any different is beyond me.
Anyway, apparently, the government wants 5 new “garden towns” to be built. No doubt after long research, one or more feasibility studies etc. so don’t hold your breath.
Also on housing first time property buyers will pay NO Stamp Duty Land Tax on purchases up to £300,000 and nothing on the first £300,000 of any property costing up to £500,000.