Notable changes are listed below:
- First-time buyers will pay no stamp duty on homes costing no more than £300,000. First-time buyers of homes worth between £300,000 and £500,000 will not pay stamp duty on the first £300,000. They will pay the normal rates of stamp duty on the price above that. This will save £1,660? on the average first-time buyer property purchase. 80% of people buying their first home will pay no stamp duty, but there will be no relief for those buying properties over £500,000.
- The personal allowance for 2018-19 is £11,850 (2017-18 £11,500). According to HMRC, this means that an average taxpayer will pay £1,075 less tax than in 2010-11.
- The income tax bands for 2018-19 have been increased. They are: basic rate band increased to £34,500 (2017-18 £33,500); higher rate band £34,501 to £150,000 (2017-18 £33,501 to £150,000); additional rate, no change, applies to income of more than £150,000.
- There is no change in income tax rates, and the tax rates applied to dividend income. Readers should note that the present £5,000 tax-free dividend allowance will, as previously announced, be reducing to £2,000 from April 2018.
- There is a small increase in the marriage allowance from £1,150 to £1,185 from April 2018. This is the amount of unused personal tax allowance that can be transferred between spouses, or civil partners, if the person receiving the transfer is not a higher rate tax payer.
- From 29 November 2017, the government will also allow marriage allowance claims on behalf of deceased spouses and civil partners, and for the claim to be back dated four years in appropriate cases.
- New railcard is to be introduced for the 26 to 30 age group. Government will work with the rail industry to introduce the new railcard from spring 2018.
- The duty on beer. wine, cider and spirits is to be frozen. However, cheap, high strength cider will be subject to a new band of duty.
- The duty on cigarettes will increase by 2% above inflation and hand-rolling tobacco by 3% above inflation.
Please call if you need more information on any of these changes.
Contact DSC Chartered Accountants in Harrogate on 01423 560547 or Leeds 0113 243 3559.