The Chancellor delivered his first Autumn Budget on Wednesday and no doubt you have read or been sent a number of commentaries since then; we have therefore tried to pick out those points that we feel are of most relevance to our clients. Further detailed commentary is available here on our recently relaunched website.
Despite an inordinate amount of prior speculation, the measures actually announced are surprisingly few and surprisingly favourable. This summary is therefore mainly a list of dogs that did not bark.
Income Tax
Nothing except the rise of tax thresholds in line with inflation.
Capital Gains Tax
Nothing except the removal of indexation of base costs for companies.
Pensions
Nothing except the Lifetime Allowance rise in line with inflation to £1.03 million.
Stamp Duty
A useful saving for first-time buyers of properties up to £500k with a nil charge on the first £300k.
Venture Capital Trusts and Enterprise Investment Schemes
Apart from the restriction on investments with a “Capital Preservation” main purpose already announced, the new measures are relaxations of rules introduced in the last couple of years, particularly in relation to investment in “Knowledge Intensive” companies.
No change to the annual investment limit for VCTs but EIS investments up to £2 million each year will be permitted provided that the excess over £1 million is into “Knowledge Intensive” companies.
Business Property Relief for IHT
Not mentioned.
Dividend tax
No announcement but a reminder that the reduction in the threshold from £5,000 to £2,000 p.a. will take effect on 6th April 2018 (if the Chancellor can re-announce positive items we can do the same for negatives!).
If there are any matters you would like to discuss in relation to the Budget or any aspect of your financial planning then please do not hesitate to get in touch.