The Budget & You

The Budget and You

This last Spring Budget focussed on the stability of the tax system and signalled increasing alignment in the tax treatment of the employed and self-employed.

Chancellor of the Exchequer Philip Hammond today delivered what people had expected – a Budget of few surprises to provide a “strong, stable platform for Brexit”. Most of the key announcements were not strictly related to tax, with attention paid to the funding of adult social care in England and the upcoming revaluation of business rates. However, the previous Chancellor having announced that Class 2 National Insurance was to be abolished with effect from April 2018, the Chancellor has announced an increase in Class 4 National Insurance contributions for the self-employed.

Other than that, very little to report for ‘Individuals’ following today’s Budget:

Reduction in dividend allowance from £5,000 to £2,000 from 6 April 2018.

Income tax rates remain unchanged: basic rate 20%, higher rate 40%, additional rate 45%.

Personal allowance – £11,500 from 2017, £12,500 by 2020.

40% tax rate threshold – £45,000 from 2017, £50,000 by 2020.

Capital gains tax (excluding residential property) – basic rate taxpayers 10%, higher and additional rate taxpayers 20%.

That’s all folks.

Duncan R Glassey
Senior Partner – Wealthflow LLP

duncan.glassey@wealthflow.com

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