As we look forward to 2017, the changes brought in by the 2016 Autumn Statement will begin to take effect.
The Autumn Statement was a sober affair, relative to the previous Chancellor’s headline-grabbing announcements, but for our Private Clients, the increase in the ISA allowance to £20,000 from 6th April 2017 is to be welcomed and reinforces the use of ISAs as tax-efficient vehicles.
Other points to note include confirmation of the Government’s commitment to increase the income tax personal allowance to £12,500 and the higher rate threshold (the sum of the personal allowance and the basic rate limit) to £50,000 by 2020/2021. To this end, the Government confirmed that in 2017/2018 the personal allowance will rise to £11,500 and the higher rate threshold to £45,000.
The annual chargeable amount for the annual tax on enveloped dwellings (ATED) will rise in line with inflation for the 2017/2018 chargeable period (which begins on 1st April 2017).
The Government also reaffirmed its commitment to reforming the taxation of non-domiciled individuals. Principally affected will be those non-domiciliaries who are long-term residents in the UK. Changes to the existing legislation will be introduced in the Finance Bill 2017.
With effect from autumn 2017, the annual Autumn Statement will be dropped, but the annual Budget will be held in the autumn rather than in the spring.
For more information, please contact the partner having responsibility for your affairs or any partner in the Private Client Department.