This blog gives a summary of five key changes which will impact personal tax following the Autumn Budget 2017.
The personal allowance is currently £11,500, in 2018/19 this will be increased to £11,850.
For 2018/19 there will be no personal allowance available where adjusted net income exceeds £123,700.
The government has announced that for 2018/19 the basic rate band will be increased to £34,500 so that the threshold at which the 40% band applies is £46,350 for those who are entitled to the full personal allowance.
The additional rate of tax of 45% remains payable on taxable income above £150,000.
The Chancellor has confirmed the Dividend Allowance will be reduced from £5,000 to £2,000 from 6 April 2018. The expectation is that even with this reduction 80% of ‘general investors’ will not pay tax on their dividend income. However, the change will impact family company shareholders that take dividends in excess of the £2000 limit.
Universal Credit is a state benefit designed to support those on a low income or out of work. It is intended to replace some benefits such as housing benefits, tax credits and income support. It is being introduced in selected areas. The intention is that the rollout will be completed by September 2018.
The government will introduce measures to ensure venture capital schemes (the EIS, Seed Enterprise Investment Scheme and VCTs) are targeted at growth investments. The government has announced that relief under the schemes will be focussed on companies where there is a real risk to the capital being invested, and will exclude companies and arrangements intended to provide ‘capital preservation’.
To find out more about the changes to personal tax read our Summary of the Autumn Budget 2017. If you have any questions don’t hesitate to contact us by calling 01623 490120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..
Haidee is our Personal Tax Director and is a fully qualified tax adviser, having achieved the ATT qualification in 2006. Tax efficiency being her main concern. Specialising in taxation, Haidee provides clients with advice on personal tax, PAYE services, VAT and social security. She also provides guidance to new start-up businesses.
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When you first start a business, your focus is usually on attracting customers, generating sales and building a successful company. Few business owners spend much time thinking about how or when they will eventually leave the business.
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