Budget 2017: First Thoughts
22nd November 2017
GDP growth forecast
Annual rate of CPI inflation forecast to fall from peak of 3% to 2% in the year.
Public sector net borrowing as % of GDP
National debt as % of GDP
From April 2018, increases in business rates will be pegged to CPI instead of RPI.
Tax and NIC
- SDLT abolished for first-time buyers of property up to £300,000. First-time buyers of property less than £500,000 will pay no SDLT on the first £300,000.
- Personal allowance to rise to £11,850 in April 2018 and threshold at which higher-rate tax is charged to increase to £46,350.
- No benefit in kind for electric cars charged at work.
- R&D tax credit raised to 12% for large company scheme.
- VAT threshold for small business to remain at £85,000 for two years.
- Freezing indexation allowance for Capital Gains Tax from January 2018.
- Digital economy – from April 2019, income tax will be applied on royalties on UK sales paid to low-tax jurisdictions.
- Government is also looking at a split VAT payment model to reduce online VAT fraud and improve VAT collection.