The Chancellor made his Budget Speech for an hour starting at 12.40pm on 22 November 2017.
He likes the sense of opportunity in Britain and wants young people to feel that; however, the economic forecast is not necessarily conducive to boundless optimism.
The overall economic picture is that growth in GDP is only expected to be 1.3% with no significant increase for at least 5 years. £3bn has now been set aside for Brexit preparations. Government says that it is looking to seize the opportunities for change and investing for that future. There will be a “balanced approach to fiscal responsibility” – “civilised and tolerant”. “Key is to get more people into well paid work.” Inflation rising to 3%. Debt is due to due to peak this year and then fall.
Investments promised in various hi-tech projects using Geo Data. Action on patient capital and increasing productivity.
Changes announced on taxation include:-
Restrictions promised on EIS schemes for capital preservation but limits rise for knowledge based companies.
Increase personal allowances to £11,850 from April 2018. Higher rate threshold increased to £46,350
Further package of measures to counter tax avoidance.
Freezing indexation allowances for companies on their capital gains.
VAT threshold fixed at £85,000 for two years and consultation on changing this.
Income tax to be charged on royalties paid to companies tax havens which are linked to UK sales e.g. for use of a brand name.
Oxford – Milton Keynes – Cambridge growth corridor promised.
Stamp Duty abolished for first time buyers on property up to £300,000 on relief on first £300,000 of properties over £500,000.
Rate of R& D tax credits increased from 11% to 12%
Landlords will be allowed to claim a mileage rate for business travel
Technical amendments to the restrictions on Corporate Interest deductions help achieve the original aims.
Electricity provided by employers for employee electric vehicles is no longer a benefit in kind.
Extension of the capital gains tax regime to include non-domestic property owned by non-Residents
The full list of measures is available from HMRC
