The Chancellor Phillip Hammond has announced the first Autumn Budget will be held on 22 November 2017. This will be the first time since 1997 that the Budget has been presented in the autumn.
The Autumn Budget will be followed by a Spring Statement in 2018.
Previously the government made changes to the fiscal policy twice a year and we were the only major advanced economy to do so.
The main reasons for the change is to ensure that tax changes are revealed in advance of the new tax year starting in April. It is also hoped that less frequent changes in the tax system will promote more stability for business and individuals, however the government still have the option to change policy in the Spring Statement if the economic circumstances require it.
The Finance Bill 2017-19 was published in September which included a number of items which were dropped from the Finance Bill 2017 due to the snap general election in June 2017, including:
Reduction of the dividend allowance from £5,000 to £2,000 from April 2018
Reduction of the money purchase annual allowance (MPAA) from £10,000 to £4,000 with retrospective effect from April 2017
Making Tax Digital
Reduction of the threshold for non-domiciled status with retrospective effect from April 2017
Introduction of new tax rates for ultra-low emissions vehicles from 2020/21
If published at its current length the Finance Bill 2017-19 will be the second longest Finance Act at 674 pages! The longest Finance Act with 703 pages is the Finance Act 2012.
It is anticipated that the Finance Bill will receive Royal Assent to law in December 2017.
If you wish to discuss how these, or any other changes may affect you or your business please contact your local Perrys branch.
Article written by Zoe Gibbons
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