The Spring Budget 2017

Welcome to the last Spring Budget (until a future Chancellor brings it back). From Autumn 2017, the Government’s intention is to move towards a single fiscal event each year. This does, however, mean that we have two budgets in 2017.
The idea is to move towards a more stable and certain tax environment that will help businesses and individuals to plan better by announcing changes well in advance of the next financial year. We will leave you to decide if it achieves this goal.

The Personal Tax section of the Spring Budget document states that “Since 2010, the Government has taken action to reduce taxes and enable working people to keep more of what they earn”. However, in the next two paragraphs the document makes clear that those actions will be discontinued with:
  • An increase in Class 4 National Insurance Contributions that will impact anyone who is self-employed and has profits of more than c.£8,000; and
     
  • A reduction of 60% in the tax-free dividend allowance supposedly aimed at those who work through a company.
Jeremy Corbyn stood up and commented on the tax cuts for the wealthy, but where these are has eluded us. Perhaps he is referring to the increased ISA allowance?

Those who carry on property development in the UK remain in focus, as do those who claim interest as a deduction. The significant changes for “non-doms”, including the proposed changes that will impact all offshore trusts and Inheritance Tax implications of the ownership of UK residential property, will be introduced as expected (albeit that some crucial areas are still not clear) with welcome change for those who will be able to clear up their “mixed funds”.

Businesses

Does the Government believe in tech?
Income Tax and Corporation Tax disposals of land in the UK
Insurance Premium Tax (IPT) rate goes up!
Research and development (R&D) tax review
Tax treatment of appropriations to trading stock
VAT chargeable on mobile phone usage outside the EU
VAT registration and deregistration threshold increased
VAT – split payment model
Update on previously announced tax changes

Charities & Not-for-Profits

Impact on charity sector

Individuals

Changes to National Insurance Contributions for the self-employed
Clarifying how “partners” are taxed
Immediate 25% QROPS transfer tax announced
Making Tax Digital and cash accounting
New HMRC penalties for enablers of tax avoidance
Non-UK resident companies and UK tax
Pension savings – cut to Money Purchase Annual Allowance goes ahead
Reform of domicile rules and inheritance tax on UK residential property
Rent-a-room relief – changes ahead?
Stamp Duty Land Tax – filing and payment window
Tax free dividend allowance reduction
The taxation of different forms of remuneration

If you have any questions about how this Budget will impact you or your organisation, please speak to your usual Buzzacott contact or enquiries@buzzacott.co.uk.
Use of Cookies

Like most websites Buzzacott uses cookies. In order to deliver a personalised, responsive service and to improve the site, we remember and store information about how you use it. This is done using simple text files called cookies which sit on your computer. These cookies are completely safe and secure and will never contain any sensitive information.

×