During his final Budget before the UK leaves the EU, Philip Hammond declared the era of austerity is “finally coming to an end”, with the biggest giveaway Budget since 2010. But what do the latest announcements mean for you? Here we highlight just some of the key points that could impact your personal finances.
- From April 2019, the personal allowance will increase from £11,850 to £12,500
- The higher rate tax threshold will increase from £46,351 to £50,000 in April 2019
- The minimum wage will also rise by 4.9% from £7.83 to £8.21 in April 2019
- Stamp Duty will be abolished for all first-time buyers of shared ownership properties valued up to £500,000
- Fuel duty will freeze for a ninth consecutive year, which is estimated to save the average driver £1,000 since 2010
- Duties on beer, cider and spirits will remain frozen. However, the cost of a bottle of wine will rise by 8p, in line with inflation, in February 2019
- From April 2020, lettings relief will only be available in circumstances where the owner of the property is in shared occupancy with the tenant
- Entrepreneurs Relief will be retained, but minimum qualifying period extended from 12 months to two years
- Threshold for VAT registration to remain unchanged for a further two years
And finally, Brexit
Phillip Hammond announced an additional £500m for Brexit preparations in government departments and is prepared to upgrade the Spring Statement to a “full fiscal event” if necessary, so watch this space!