As many of you will be aware, earlier this week Chancellor Philip Hammond delivered his Budget to Parliament.
The budget means different things to different people. However, one thing that remains prevalent amongst the majority if the question; how will it affect me?
2016’s Autumn Budget was a mixed bag. Amongst several other talking points, we saw insurance premium tax rise from 10% to 12%, a planned increase in tax-free allowance and a small rise national living wage.
But how we UK taxpayers fair following this year’s autumn budget. Below are some of the main talking points and how they may affect you.
Stamp Duty Reform
The point that has generated the most attention was the immediate abolition of stamp duty on properties costing up to £300,000.
This is music to the ears of many first-time buyers, who until now, would have paid £1,660 in stamp duty on the average property cost of £211,980.
It’s also good news for those spending a little more on property. Previously, those spending up to £500,000 on a property would pay stamp duty on anything over the minimum threshold of £125,000. The recent reform means that no stamp duty will be paid on the first £300,000.
Increase in Personal Allowance
The amount earned before income tax is paid is known as your personal allowance.
In April, the personal allowance will rise from £11,500 to £11,850.
As it stands, there are 31 million UK income taxpayers. Of that, 26 million pay the basic tax rate.
For someone paying the basic tax rate, this increase in personal allowance is likely to shave less than £100 off their annual bill.
The higher rate tax threshold of 40% will also increase from £45,000 to £46,350.
Beer and cigarettes
Based on previous years, an increase in duty on alcohol would have come as no surprise to MANY.
Surprisingly though, the chancellor announced that duty on beer cider and spirits has been frozen in this Autumn’s Budget. However, duty on some high strength drinks (including some ciders) will increase.
The chancellor did announce that there will be an additional duty on hand-rolling tobacco.
Good news for drivers?
In the past, the Budget has been notoriously unkind to drivers, with recent rises in tax, fuel and insurance.
The good news is, fuel duty has once again been frozen this year.
There is some food-for-thought for those in the market for a new car in 2018. As of April, those driving new diesel cars will be levied on one band higher than those with petrol cars.
The millennial railcard
Finally, the government announced that there would be an extension to the 16 -25 railcard. This means that those up to 30-years-old will now be able to purchase the £30 railcard and subsequently be eligible for discounts on some regular rail fares.
This ‘millennials card’ will be available as of spring next year.
The chancellor also announced that the Autumn budget will be abolished. This gave some people the impression that Philip Hammond would be resigning – this was not the case! Instead it is to be moved from Autumn to March, meaning there will now be a Spring statement.