The Chancellor has just delivered a Budget that promised to show “no complacency before Brexit” and many awaited what lay ahead for the “last ever” Spring Budget.
Here is a summary from the latest announcements:
GDP growth forecast
- 2017 2.0%
- 2018 1.6%
- 2019 1.7%
- 2020 1.9%
- 2021 2.0%
- 2017 2.4%
- 2018 2.3%
- 2019 2.0%
- 2017 £58.3bn
- 2018 £40.8bn
- 2019 £21.4bn
- 2020 £20.6bn
Debt rose to 86.6% of GDP this year, but will fall to 79.8% in 2021-22.
- Rates increase will be capped at £50 per month for businesses coming out of small business rate relief.
- Pubs – £1,000 discount on rates for pubs with rateable value below £100K.
- £300 million discretionary relief fund for local authorities.
NIC and tax
- Class 4 NIC for self-employed will increase from 9% to 10% in April 2018 and then to 11% in 2019.
- Dividends – tax-free allowance will fall from £5,000 to £2,000 from April 2018.
- Capital losses – transferring fixed assets to trading stock, it will no longer be possible to convert capital loss into a trading loss.
- Making Tax Digital – quarterly reporting for businesses below VAT threshold will be postponed by one year to April 2019.
- Pledge to simplify the administration of R&D tax credits.
- Consultation to update the tax treatment of employer-provided accommodation.
- New technologies – £270m for robots and driverless vehicles.
- Mobile – £16m for 5G mobile technology.
- Broadband – £200m for local broadband networks.
Look out for our full Spring Budget report tomorrow morning.
If you have any questions regarding our budget highlights, please contact your nearest Wilkins Kennedy office.