Budget 2017 : My Budget Predictions
How many do you think will happen?
POSTED BY ROGER EDDOWES ON 13/11/2017 @ 8:00AM
Philip Hammond will present his first Autumn Budget, a switch from the usual spring date. With Brexit looming, a slowing economy and pressure to end austerity, I don't envy the Chancellor ...
Budget 2017 is upon us. What do you think Philip Hammond will announce?
copyright: iakov / 123rf stock photo (licensee)
The press has got the bit between their teeth this year with articles from each paper detailing what he should do to fix the economy and restore growth. However, a lot of it is politically motivated.
"I wonder where he'll find the money to cover everything!"
So, as an experienced accountant who keeps a close eye on the economy, the Treasury and the banks, here are a dozen (possibly controversial) predictions I believe may be announced:
Overhaul of stamp duty on residential property, such as changing the liability from buyers to sellers. This will increase mobility and help people upsize and first-time buyers get onto the housing market.
Abolish pension tax relief at 40%. Currently, relief is linked to the rate of tax paid, so if you pay tax at 40% you get relief at 40% rather than 20%, if you only pay basic rate tax. This will hit many hard so will a rate of say 30% be put in place across the board?
Adding 5p to the price of diesel to encourage the switch to hybrid and electric.
Adding a further new car tax on diesel cars and introducing a universal scrappage scheme for all vehicles built before 2010 - not surprising diesel new car sales plummeted by 22% in September.
Increase duty on all wine, beer and spirits to dampen the Christmas party season!
Reduce the tax relief on Enterprise Investment Scheme investments from 30% to 20%. EIS is viewed as a tax relief for the wealthy.
Student loan repayment threshold to be increased from the current £21,000 to £25,000.
VAT threshold to be drastically reduced to £26,000 to create a level playing field and prevent small businesses restricting their growth, so they always remain below the threshold.
Will the Chancellor be brave and abolish personal national insurance by increasing the basic rate of income tax to 32%?
Reduce corporation tax for micro businesses to 15% by 2020.
Reduce the inheritance tax benefits associated with shares quoted on the Alternative Investment Market (AIM).
Reducing the dividend tax-free limit from £5,000 to £1,000 or even £500 to match the interest tax-free limit.
So what do you think is going to happen?
Will Philip Hammond play it safe? Will he take a risk and implement a whole raft of new changes to benefit small businesses and the self-employed or will it be same old same old as Brexit approaches with him needing to save up for the dreaded EU Bill?
Do let me know your thoughts in the comments section below.
Until next time ...
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More about Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves ‘getting his hands dirty’, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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