The Autumn Budget 2017
At first glance, last month’s Autumn Budget did not seem to contain much in the way of private client tax announcements. Closer examination of the detail reveals there was in fact more than met the eye – here are some that stood out.
Philip Hammond’s budget last month provided a welcome boost for first time buyers, who will have no Stamp Duty Land Tax (‘SDLT’) to pay on acquisitions up to £300,000, and SDLT at a rate of 5% on acquisitions exceeding £300,000 where the total acquisition cost is not more than £500,000. However, first time buyers for this purpose do not include buyers who have previously acquired an interest in land anywhere in the world, even if by way of inheritance, gift or distribution under a trust – meaning ‘first time owner‘ may have been a more appropriate term for the Chancellor to use.
There will be a rise in the capital gains tax annual exempt amount from £11,300 to £11,700 for individuals and personal representatives, and from £5,650 to £5,850 for trustees, whilst the income tax personal allowance increases to £11,850 and the higher rate threshold (being the sum of the personal allowance and the basic rate limit) to £46,350.
Good news for earners was offset with less good news for savers, though, with the ISA subscription limit to remain unchanged at £20,000 and the income tax starting rate limit for savings to stay at £5,000, although savers will have been buoyed by the Bank of England’s base rate rise earlier in the mont
Unsurprisingly, given recent news coverage of the so-called ‘Paradise Papers’, measures affecting non-residents were announced. These included the launch of a consultation to bring gains on all UK property owned by non-residents within the scope of UK tax, thereby widening the net from gains on residential property to include gains on commercial property too. No doubt there will be pressure on the government to do more in this area.
For more information, please contact the partner having responsibility for your affairs or any partner in the private client department here.
This article is written by James Mabey, who is an Associate at Hunters Solicitors.