The Chancellor's budget speech included some expected, and some unexpected, items that will be of interest to our individual and business clients.
Mr Hammond promised to keep taxes low and provide "help to families and businesses under pressure". Here are the key points Ami and Penny have picked out:
- Corporation tax indexation allowance to be removed from January 2018, but no change to corporation tax rate announced.
- Stamp duty land tax relief for first time buyers: no SDLT for first time buyers purchasing homes worth up to £300,000 - and SDLT relief for first time buyers in areas where housing is more expensive - purchase prices up to £500k will pay no SDLT on the first £300k of the price. This is a welcome contribution of £5k.
- Support for maths and digital skills to help bridge the skills shortage gap.
- Planning reform to support the promised delivery of 300,000 new homes every year.
- Funding and support for SME house builders and developing construction skills.
- Tax to be levied on royalties on UK sales payable to low tax jurisdictions from April 2019 even if they are not taxable in the UK currently.
- Help for small business - VAT threshold not reduced but frozen at £85,000 for the next two years.
- Increased investment in infrastructure.
- R&D tax credit increased to 12%.
- Mr Hammond is promising to crack down on "tax avoidance and tax evasion" but few details were given.
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