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Autumn Budget 2017: how will your personal finances be affected?

Chancellor Phillip Hammond’s first ever Autumn Budget statement was a low-key affair, with a relative lack of headline-making announcements.

Instead, the chancellor sought to steady the ship with measures designed to mitigate the uncertainty caused by the ongoing Brexit negotiations. This was a budget to help prepare for the changes that the country will be undergoing over the coming years.

What does this all mean for your personal finances?

There were few tax changes to speak of, neither were there any announcements that will cause you to alter your investment, saving or retirement planning strategies.

What this means is that while Autumn Budget 2017 is unlikely to significantly reduce your tax bill or present you with new opportunities, there were no nasty surprises lurking in chancellor Hammond’s speech.

Stamp duty

The only headline-making announcement relates to stamp duty – and unless you are a first-time buyer or you have children looking to buy their first home, it is unlikely to provide any benefits to your financial position.

With immediate effect the government has exempted first-time buyers from stamp duty on the purchase of properties worth £300,000 or less.

This exemption will also apply to houses in expensive areas. First-time buyers in areas such as London will qualify for stamp duty exemption on properties worth up to £500,000; the first £300,000 will be exempt from stamp duty and the 5% rate will be levied on the remaining £200,000.

Income tax

The personal allowance threshold will increase by £350 to £11,850 in April 2018. While this rise is slightly less than we’ve experienced over recent years, the government remains on track to fulfil David Cameron’s original 2015 pledge to raise the personal allowance to £12,500 by 2020.

The higher rate income tax threshold will also increase by £1,350 to £46,350 from April 2018.

Have you got questions about Autumn Budget 2017?

Knight and Company produces in-depth coverage of every major financial statement delivered by the government.

Read our full Autumn Budget 2017 report  or contact us on 01628 631 056 or email dominica@knightandcompany.co.uk for more information.