The Chancellor delivered his Autumn Statement on Wednesday 23 November, which highlights what we can expect in the new tax year starting 6 April 2017.
Below are the main highlights:
Business Tax
- Corporation tax is set to fall to 17% from 20% by 2020.
- £400m pledged into Venture Capital trusts to invest in innovative small businesses with potential for growth
- £23bn national productivity investment fund aimed at backing new infrastructure and innovation over the next 5 years.
- Business rates will continue to be reduced, and rural rate relief will double to 100% to bring it in line with business rate relief.
- Insurance premium tax will increase from 10% to 12% in June 2017.
- National Living Wage for over 25 year olds will increase from £7.20 per hour to £7.50:
- National Minimum Wage will increase:
- for 21 to 24 year olds – from £6.95 per hour to £7.05
- for 18 to 20 year olds – from £5.55 per hour to £5.60
- for 16 to 17 year olds – from £4.00 per hour to £4.05
- for apprentices – from £3.40 per hour to £3.50
Personal Tax
- Personal allowance will rise from £11,000 to £11,500 in April 2017.
- Basic rate threshold will rise from £43,001 to £45,000 in April 2017.
- The amount you can put into a pension without being taxed (money purchase annual allowance) after you’ve started taking incomes from it − will be reduced. It will fall from £10,000 now to £4,000 in April 2017.
- ISA limit will increase from £15,240 to £20,000 in April 2017
- From April 2017, non-doms will be deemed UK-domiciled for tax purposes if they have been UK resident for 15 of the past 20 years, or if they were born in the UK with a UK domicile of origin
VAT
- From 1 April 2017 a business will be required to use a FRS percentage of 16.5% if it is a “low cost trader”.
- (a low cost trader is a business whose expenditure on goods (not services) is less than 2% of its gross turnover)
If you would like any more information on the Autumn Statement, or have any questions please get in touch straightaway.
Our app has already been updated following the Autumn Statement.
Thank you for reading!
Sharon
