Budget day on 8th March is fast approaching. What can we expect when the Chancellor of the Exchequer delivers his Budget 2017 speech and braces the economy for Brexit? Wes, Partner and Head of Tax and Wealth planning, gazes into his crystal ball.

Whilst we cannot accurately predict what new ideas will be announced, some of the issues that we know will take effect from 6th April 2017 include:

  • Introduction of the National Living Wage for individuals aged 25 or over
  • Changes to Salary Sacrifice arrangements
  • Corporation Tax rate to reduce to 19%
  • Introduction of Limited Cost Trader class for Vat Flat Rate Scheme
  • Public Sector Off-Payrolling reform for contractors working in the Public Sector
  • Restriction on tax relief for privately held Residential Investment Property
  • Non-domiciles to become UK domiciled in respect of all taxes if resident in UK for 15 years
  • Launch of Lifetime ISA for individuals under 40

Read February’s Tax Tips to find more information about some of these changes.

Whilst we do not know for sure what will happen on Budget day, recent trends have resulted in a number of predictions. Namely, it is predicted there is going to be a bumpy road ahead for the UK economy and business.

Current predictions include:

  • Scrapping of £30,000 tax-free exemption on redundancy payments
  • Further reductions to Corporation Tax – perhaps as low as 12.5% as will apply in Northern Ireland?
  • Additional tax reliefs to encourage research and development as the UK prepares to leave Europe
  • Possible alignment of Capital Gains Tax with Income Tax rates
  • Reliefs from business rate rises from April 2017
  • Further national infrastructure spending
  • More ‘help-to-buy’ arrangements to assist people to get on the housing ladder

Of course, no one really knows what will be announced until Phillip Hammond makes the speech himself.

We will be live tweeting the announcements on our Twitter feed and publishing an exclusive summary, sent straight to your inbox the same evening. The summary will get to the heart of what the upcoming changes really mean for you and your business. Sign up below!

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