MARCH 2017 BUDGET
Personal Allowance
This will increase to £11,500 in April 2017 and by 2020, is set to increase to £12,500
Higher Rate Tax Threshold
This will increase by £1,500 to £33,500 from April 2017
Money Purchase Annual Allowance
This will be reduced from £10,000 to £4,000 and will limit the extent to which pensions savings can be recycled to take advantage of tax relief
Non-UK Domiciled Individuals
Non-UK domiciled individuals will be deemed domiciled in the UK for tax purposes where they have been resident in the UK for 15 out of the past 20 tax years. As well as this, individuals who were born in the UK with a UK domicile of origin, but have acquired a domicile of choice elsewhere, will be deemed to be UK domiciled for all tax purposes while they are UK resident
Tax-free Allowance
The tax-free allowance for income from dividends will be reduced from £5,000 to £2,000. This will effectively reduce the tax difference between employed and self-employed persons with effect from April 2018
The Cash Basis
The Cash Basis of accounting is an optional and much simpler method for calculating profits which should be taxed for trading businesses with straightforward tax affairs. The entry threshold for the Cash Basis will be increased from £83,000 to £150,000
The Finance Bill 2017
The Government will legislate in the Finance Bill 2017 to reform the off-payroll rules and improve compliance in the public sector. The public sector body, agency or any other third party will become responsible for the operation of the off-payroll working rules and deducting any tax NICs that are due to be paid by an individual’s personal service company. This change will come into effect from the new tax year on 6th April 2017.
Also in the Finance Bill 2017, legislation will be introduced to remove, from April 2017, the advantages of Income Tax and employers National Insurance contributions where benefits in kind are provided through salary sacrifice or other optional remuneration arrangements
Income Tax
There will be two new Income Tax allowances of £1,000 each. These will be introduced for trading and property income. The new allowances can be deducted from income instead of actual expenses
We can work alongside your accountant to help you plan for the future with estate and inheritance tax planning, please make an appointment to see one of our Wills and Probate team who will be pleased to help.
At our Crewe Office: Alison Greatbanks on either 01270 21200 or agreatbanks@hswsolicitors.co.uk and Sophie Whittingham on either 01270 21200 or swhittingham@hswsolicitors.co.uk
At our Nantwich Office: Angela Lewis on either 01270 610300 or alewis@hswsolicitors.co.uk and Hugh Lewis-Morgan on 01270 610300 or hlewis-morgan@hswsolicitors.co.uk
