2017 Budget Announcements

Dividend Allowance

A reduction in the dividend allowance from the current £5,000 to £2,000 from 2018/19.

Personal Allowance

An increase in the personal allowance for 2017/18 to £11,500 and a corresponding rise in the higher rate threshold to £45,000.

QROPS

A new 25% tax charge on transfers to qualifying recognized overseas pension schemes (QROPS), other than for those who have ‘a genuine need’ to transfer.

Stamp Duty Land Tax (SDLT) And First-Time Buyers Relief

The Chancellor announced a commitment to getting 300,000 new homes built per year as. This was also evident as the driver behind changes to the stamp duty for first-time buyers which he abolished for all first-time property purchases up to £300,000, and on the first £300,000 of properties which exceed this figure, up to a limit of £500,000.

The EIS (Enterprise Investment Scheme)

Provides tax relief worth 30% for investments in high-risk companies plus Capital Gains Tax exemption on disposal of the shares after a set period. The Chancellor announced the doubling of EIS investment limits for ‘knowledge intensive companies’ as part of an ‘Action Plan’ to unlock over £20 billion of new investment in UK scale-up businesses. However, he also emphasised that there would be plans to ensure that the EIS system is not used as a shelter for low-risk capital preservation schemes.

Junior ISA And Child Trust Fund Annual Subscription Limit

The annual limit for Junior ISAs and child trust funds for 2018-19 will increase in line with CPI inflation to £4,260.

Lifetime Allowance For Pensions

The lifetime allowance for pension savings will increase in line with CPI inflation from £1m to £1.03m for 2018-19.

The following points have already been announced but not implemented yet and are scheduled for April 2018 and beyond:

Personal Allowance

Increase the personal allowance to £12,500 by 2020-21. This currently stands at £11,500. The threshold for higher rate of tax is set to also increase to £50,000 by 2020-21, from its current level of £45,000. Hammond announced that, from April 2018, the personal allowance will rise to £11,850, while the higher rate threshold will rise to £46,350.

Transferable Main Residence IHT Allowance

The Transferable Main Residence Allowance will come into effect, set at £100,000 for 2017/18, giving a total IHT allowance per person of £425,000. This will rise gradually to a total allowance per person of £500,000 by 2021.