Below we cut through the noise and share with you our key takeaways from the Autumn Budget 2017 for investors, and summarise the details of those changes.
Stamp Duty
Changes to EIS and VCT
The rule changes include:
- An increase in the annual investment limit that ‘knowledge-intensive’ companies can receive under EIS and VCT schemes. This could widen the range of companies that could be considered for this type of investment. Whilst there will be a focus on ’knowledge-intensive’ companies, investments in genuine entrepreneurial and independent ventures, those seeking long-term growth, will continue to be supported.
- The annual investment limit for income tax relief on EIS investments will be doubled from £1m to £2m from April 2018 onwards, as long as the additional £1m is invested in ‘knowledge-intensive’ companies.
Corporation Tax on Capital Gains
Personal Tax Allowance
Hammond announced an increase to the personal income tax allowance, raising the current basic rate allowance to £11,850 from April 2018 and the higher rate tax band to £34,501 – £150,000 respectively.
For an overview of tax allowances and any changes in light of the autumn budget 2017, please see our table below.
Type of Allowance | Current 2017/18 Allowance | New 2018/19 Allowance | Comments |
|---|---|---|---|
Personal income tax allowance | £11,500 | £11,850 | Intention to raise Personal Allowance to £12,500 by 2020 |
Higher rate income tax band | £33,501 – £150,000 | £34,501 – £150,000 | Intention to raise Higher Rate Tax band to £37,500 by 2020 |
Additional rate income tax band | Over £150,000 | Over £150,000 | No change |
Capital Gains Tax Annual Exemption | £11,300 | £11,700 | n/a |
ISA allowance (Lifetime ISA)) | £20,000 (£4,000) | £20,000 (£4,000) | No change |
Junior ISA / Child Trust Fund allowance | £4,128 | £4,260 | CPI increase |
Pensions Lifetime Allowance | £1,000,000 | £1,030,000 | CPI increase |
Inheritance Tax Nil Rate Band | £325,000 | £325,000 | No change |
Residence Nil Rate Band | £100,000 | £125,000 | As previously announced |
