Philip Hammond’s last pre-Brexit budget saw the Chancellor signaling an end to austerity, with improved growth forecasts allowing for income tax cuts and spending on the NHS, social care and housing. Mr Hammond said: “Today, I can report to the British people that their hard work is paying off and the era of austerity is finally coming to an end.” Here’s what some of the Budget measures might mean for you …
If you’re a higher rate taxpayer
There was good news in the Budget for UK taxpayers. The higher rate income tax threshold will rise from £46,350 to £50,000 in April. After that, it will rise in line with inflation. The personal allowance threshold, the rate at which people start paying income tax, will also rise to £12,500 – a year earlier than planned.
If you rent out property
Landlords who were hoping for an end to the 3% stamp duty levy on additional properties were to be disappointed – as were landlords looking to sell their rental properties. After April 2020 people who let out their former home will no longer be eligible for up to £40,000 in lettings relief on the capital gains tax they pay when they sell the property.
If you, or a family member, need help getting on the housing ladder
They could benefit from two announcements in the budget. The Chancellor will abolish stamp duty for first-time buyers of shared ownership properties priced below £500,000. The Help to Buy equity loan scheme – which offers first-time buyers of new-build properties government loans of up to 40% in London – is being extended by two years, until 2023.
If you’re an overseas investor
You could find yourself paying more stamp duty. The Prime Minister recently announced a stamp duty surcharge for non-residents buying homes in England and Northern Ireland. The Chancellor has now confirmed that consultation into a 1% levy will begin in January. Money raised will be used to help tackle homelessness.
If you’re a driver
As the Prime Minister had announced previously, fuel duty will be frozen for the ninth year in a row. And councils in England will be given an extra £420m to deal with the annoying problem of potholes on thier roads.
For more on the Budget and what it might mean for you visit the BBC website
