The Chancellor Philip Hammond announced that his first Autumn Statement will also be his last. In future, the main Budget announcements will be made in the autumn rather than the spring. We were not expecting that many tax announcements and many that were made we already knew about. He could not afford too many give-aways as he expects the economy to have a bumpy ride during the BREXIT transition.
There will still be a Budget next March but thereafter the annual Budget will be in the Autumn to allow longer consideration of the announcements and draft legislation before enactment the following summer.
KEY TAX ANNOUNCEMENTS
- Personal allowance to increase to £11,500 in 2017/18, rising to £12,500 by 2020/21
- Higher rate tax threshold to increase to £45,000 in 2017/18, rising to £50,000 by 2020/21
- National Insurance threshold to be raised to £157 a week for employees and employers
- Corporation tax rate to reduce to 17% in 2020
- Business tax “roadmap” to continue, in particular, new rules for company losses
- Insurance premium tax to increase from10% to 12% from 1 June 2017
- More anti-avoidance measures, in particular, a new VAT flat rate percentage for “limited cost traders”