Today, the Chancellor, Philip Hammond delivered his Autumn 2017 Budget. There was little change to personal taxation with no increase in income tax or national insurance keeping in line with The Conservative 2015 election manifesto. The personal allowance is currently £11,500, whereby the first £11,500 of an individual’s income is received tax free – it was announced today that the personal allowance for income tax will rise to £11,850 from April 2018 for all UK taxpayers.
The threshold at which tax payers, other than Scottish tax payers, are liable to the higher-rate of income tax, will rise from £45,000 to £46,350. There is already a difference between the threshold for paying higher rate tax for Scottish taxpayers and the threshold for taxpayers in the rest of the UK with Scottish taxpayers being liable to a higher rate of tax on income (not including various types of investment income) over £43,000, whereas for the rest of the UK, the higher rate of tax applies to income levels over £45,000.
The Scottish Government is still to announce their Budget for 2018/19 and this is likely to be delivered next month.
Stamp duty which is payable on property purchases in the rest of the UK, has been abolished for first-time buyers purchasing properties costing up to £300,000, while those buying more expensive homes worth up to £500,000 won't pay any duty on the first £300,000. This concession comes in to effect as from today. Scotland has its own devolved land & property tax in the form of Land & Buildings Transaction Tax (LBTT) and it will be interesting to see if the Scottish Government will follow suit with a similar package designed to help first time buyers.