Philip Hammond delivered his first and last Autumn statement, and announced that as of next year the UK will have an annual Budget in the Autumn. The Spring 2017 Budget will be the final Budget to be held at that time. He stated that “No other major economy makes hundreds of tax changes twice a year, and neither should we"
The Chancellor re-affirmed announcements from previous Budgets and Autumn Statements which included:
on certain salary sacrifice schemes will cease from April 2017. Pension contributions, cycle to work scheme, Child care and ultra-low emission company cars will not be affected. Schemes such as gym membership, health screening and computers purchases will be subject to tax from April 2017. Arrangements already in place before April 2017 will be protected until April 2018 and arrangements in relation to cars, accommodation and school fees will be protected until April 2021
A new savings bond is to be launched offering interest rates of 2.2% gross over a 3 year period with a minimum investment limit of £100 and a maximum investment of £3,000. The new product will be available for 12 months from spring 2017.
The launch of a new Lifetime Individual Savings Account (LISA) for those aged between 18 and 40 is to become available from April 2017. Save up to £4,000 a year, and the government will add a 25% bonus if the money is used to purchase a home or as a pension from the age of 60.
The gradual process of allowing helping people to pass on property to their descendants with increased tax relief will commence in April 2017. From April 2017 each individual will receive an additional £100,000 on top of the existing allowance solely to be used against the value of their family home to be passed on to children.
will rise from 10% to 12% in June 2017.
is £11,000 for the current tax year and will rise to £11,500 in April 2017. The current UK government have promised to raise the Personal Allowance to £12,500 by 2020-21 and increase with inflation after that.
The government is introducing a new tax relief to help those who buy and sell on a small scale, such as on internet auction sites or at car boot sales. From April 2017, the first £1,000 a year of income will not be taxable.
There will be similar relief for the first £1,000 of property income, such as from letting your room via a website.