The Chancellor of the Exchequer, Philip Hammond, has unveiled his Budget to Parliament – here’s a brief summary of some of the measures announced which may affect your own personal finances.
Stamp duty land tax (SDLT) abolished for first-time buyers on homes under £300,000 from 22 November
First-time buyers of homes worth between £300,000 and £500,000 will not pay stamp duty on the first £300,000. They will pay the normal rates of stamp duty on the price above that. This will save £1,660 on the average first-time buyer property.
The government estimates that 80% of people buying their first home will pay no stamp duty. However, the relief will not apply for those buying properties over £500,000.
Help-to-buy boost confirmed
The Chancellor confirmed the government will pump an extra £10bn into the help-to-buy scheme, funding 135,000 more home purchases for buyers struggling to get onto or move up the property ladder.
300,000 new homes a year, an amount not achieved since 1970
£15.3 billion in new financial support for house building over the next five years – taking the total to at least £44 billion in capital funding, loans & guarantees.
This includes £1.2 billion for the government to buy land to build more homes, and £2.7 billion for infrastructure that will support housing.
The government will also create 5 new ‘garden’ towns.
Council tax on empty properties
The government will legislate to give local authorities the power to charge a 100% council tax premium on empty homes.
The National Living Wage and the National Minimum Wage will increase from April 2018
The National Living Wage (NLW) for those aged 25 and over will increase from £7.50 per hour to £7.83 per hour from April 2018. The government expect over 2 million people to benefit. For a full-time worker, it represents a pay rise of over £600 a year.
The National Minimum Wage will also increase:
- 21 to 24 year olds – £7.38 per hour
- 18 to 20 year olds – £5.90 per hour
- 16 and 17 year olds – £4.20 per hour
- Apprentices – £3.70 per hour
The tax-free personal allowance will rise
The personal allowance – the amount you earn before you start paying income tax – will rise to £11,850 from April 2018, an increase of £350. This means that in the tax year 2018-19, a typical taxpayer will pay £1,075 less income tax than they did in 2010-11.
Higher-rate tax threshold
The higher rate threshold, which is the amount you can earn before paying 40% income tax, will rise from £45,000 to £46,350 from April 2018.
Lifetime allowance for pension savings will increase in line with CPI
The lifetime allowance for most people is £1 million in the tax year 2017-18.
It applies to the total of all the pensions you have, including the value of pensions promised through any defined benefit schemes you belong to, but excluding your State Pension.
From 6 April 2018, the government intends to index the standard lifetime allowance annually in line with the Consumer Prices Index (CPI).
Fuel duty remains frozen for an eighth year
Good news for motorists as the planned fuel duty rise in April 2018 is cancelled, which the government says will save drivers £160 a year on average.
A new discounted railcard for 26 to 30 year olds
The government will work with the rail industry on a new railcard for those aged 26-30 which will be introduced from spring 2018, intended to save 4.5 million young adults around a third on fares.
Duty on beer, wine, cider and spirits will be frozen
The cost of a pint of beer or cider will be 1p lower than if duty had risen by inflation. The cost of a typical bottle of wine will be 6p cheaper.
Cheap, high-strength cider will be subject to a new band of duty.
Duty on tobacco will rise
The duty on cigarettes will increase by 2% above inflation. Hand-rolling tobacco duty will increase by 3% above inflation.
Air Passenger Duty frozen
All economy passengers and those on all short-haul flights (95% of passengers) will not see an increase in their Air Passenger Duty. It will rise though for premium fares on long-haul flights, and on private jets.
Business rates revamp
Business rates will switch to being increased by the Consumer Price Index (CPI) from the Retail Price Index (RPI) 2 years earlier than planned.
Business rates revaluations will take place every 3 years, rather than every 5 years, starting after the next revaluation, currently due in 2022.
Pubs in England will continue to receive a £1,000 business rates discount next year
The discount applies to pubs with a rateable value of up to £100,000.
For more information read our in depth summaries of the Autumn Budget 2017: