With the first Autumn Budget just a couple of days away, we’re looking at what we can expect, and what it could mean for you or your business.
Whilst many predict the Budget will be overshadowed by Brexit, there are some key areas that the Chancellor will need to cover. Manifesto promises such as increasing the income tax personal allowance to £12,500 are expected to feature, as well as finding the extra £0.5billion promised to Northern Ireland as part of The Democratic Unionists Party deal with the Conservative party.
If the election showed one thing, it’s that the Conservatives under Theresa May have found it hard to win over the younger electorate.
There are rumours that the Chancellor is thinking about removing Stamp Duty for first-time-buyers to try and kick-start the housing market and win over those all-important young votes.
Income tax and National Insurance
Raising the income tax personal allowance to £12,500 and the higher rate to £50,000 by 2020, was a manifesto promise. But although there have been whispers that the Chancellor will be altering both the low and higher rate of income tax, it seems unlikely that he will choose this Budget to do both, and out of the two it seems most likely he will raise the lower rate.
Tax relief on Pension contributions
Pension contributions could also see a significant change, the current limit is set at £40,000, but a reduction to £35,000 or below could be made.
Following on from last week’s Paradise Papers, we would expect to see some measures to target people avoiding tax by using off-shore accounts. There have been no rumours as to what this may be as of yet, but it would be a quick win for the Chancellor both in the press and in Parliament.
We’ll be posting our response to the autumn Budget on 22nd November, so don’t forget to check back to find out what the Autumn Budget will mean for you.