In his first Budget on 8th March 2017, the Chancellor Philip Hammond announced the following key points:
Tony Flanagan Managing Partner
The rate for the financial year to 31 March 2018 will reduce to 19% (from the current rate of 20%) with a potential further reduction to 17% for the financial year ending 1 April 2020.
Personal tax-free allowance to rise as planned to £11,500 this year and to £12,500 by 2020. The main rate of National Insurance is to remain the same, Class 4 rates will not increase in this Parliament. Class 2 National Insurance, a separate flat rate contribution paid by self-employed workers making a profit of more than £5,965 a year, is to be scrapped as planned in April 2018.
Pensions & Savings
Reduction in tax-free dividend allowance for shareholders and directors of small private firms from £5,000 to £2,000 . The measure will come into force in April 2018, raising £2.63bn by 2021-2022. The tax-free dividend allowance – which was only introduced last year – will be reduced from £5,000 to £2,000 from April 2018.
Health and Social Care
Insurance Premium Tax will rise from 10% to 12% from June 2017. This may lead to a rise in insurance premiums if insurers choose to pass on this increase to customers. £425 million investment in the NHS in the next three years. £100m to place more GPs in accident and emergency departments for next winter. Additional £325m to allow the first NHS Sustainability and Transformation Plans to proceed. An extra £2bn for social care over next three years, with £1bn available in the next year. Vehicle excise duty rates for hauliers and the HGV Road User Levy frozen for another year.
£435m for firms affected by increases in business rates, including £300m hardship fund for worst hit.
A new strategy to make the UK a world leader in 5G technology. £16 million for a national 5G Innovation Network to trial new 5G technology. And £200 million for local projects to build fast and reliable full-fibre broadband networks.
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