In Philip Hammond’s much-anticipated pre-Brexit budget, the Chancellor bullishly declared an ‘end to austerity’, using the tax system to free up more money for both consumers and businesses.
The big headline for individuals is an increase of the personal tax allowance to £12,500 – originally slated for 2020, it will now take effect from April 2019. The lifetime pension allowance has increased to £1,055,000 and the stamp duty exemption for first-time buyers has been extended to shared equity homes.
For businesses, there is a two-year cut in business rates for small retailers, an increase in the Annual Investment Allowance to £1m and a freeze in the VAT threshold until 2022. A new 2% digital services tax will be introduced in April 2020. Making Tax Digital will apply for all businesses above the VAT threshold of £85,000 from April 2019.
Alongside these headline changes are a number of technical adjustments covering R&D spending, capital losses and more.
To find out more about how the Autumn Budget may affect you or your business, read our full Budget Report. If you require advice for your personal or financial affairs, please don’t hesitate to contact us.