Chancellor’s first (and last) Spring Budget

Post by Mearns & Company in News

The 2017 Spring Budget will be the last of its type. Probably.

The publication of the Finance Bill in the spring/summer of this year will see a change in Parliamentary proceedings. A second Budget in autumn 2017 followed by a Spring Statement in 2018 marks the start of a process enabling Parliament to scrutinise tax changes well before the tax year where most will take effect.

As if the change of a long-standing timetable wasn’t enough, the Chancellor, Philip Hammond, delivered his first Budget speech against a backdrop of Brexit uncertainty. He sent out some fairly serious messages.

For starters, as part of a fiscally-tight Budget there was the Chancellor’s decision to target the
self-employed, company owners and investors in a bid to raise billions of pounds and provide a “strong and stable platform” for the UK’s negotiations as it navigates a path away from the EU.
He also proposed to enhance the fairness in the UK’s tax system with a view to transforming the economy into one that works for everyone.

With ISA allowances set to increase to £20,000 from April 2017, and a reduction from £5,000 to £2,000 in the tax-free dividend allowance from April 2018, here are two opportunities for advisers to help clients plan for now and into the future.

Throw in the need for businesses to seek out rates advice on their premises following the impending changes to the system, combined with the relief measures announced by the Chancellor, and the Spring Budget could prove a spring-board to the forging of strong relationships between advisers and clients.

These details are based on our understanding of tax law and HM Revenue & Customs practice, which are subject to change

Questions?

If you have any questions or would like advice please use our contact page here.