Tax implications of the budget

PUBLISHED: 13:36 01 December 2017

Philip Hammond's budget was aimed at solving the housing crisis.

Philip Hammond's budget was aimed at solving the housing crisis.


The chancellor’s autumn budget delivered on November 22 focused very much on boosting the UK’s productivity and building greater self-sufficiency given the UK’s impending exit from the EU, states Jon Hook, from Norwich Accountancy Services.

Jon Hook, Norwich Accountancy Services Jon Hook, Norwich Accountancy Services

Some of the changes announced are as follow. From April 2018, the personal tax free allowance will rise from £11,500 to £11,850 and the basic rate threshold (where the tax rate changes from 20 per cent to 40 per cent) will rise from £45,000 to £46,350.

Great news for first time buyers but not so for landlords (again!) – with immediate effect, no stamp duty on the first £300,000 of the purchase price (subject to a maximum purchase price of £500,000...As for landlords, yet another blow with the chancellor announcing new powers to local authorities to charge a 100 per cent council tax premium on empty properties! He will also launch a consultation on the barriers to longer tenancies in the private rented sector and hinted at seeking ways to encourage landlords to offer these types of tenancies.

For those involved in property development and construction, the government has said it is committing £44 billion of capital funding to support the housing market with loans and guarantees to boost construction skills and ‘unlock’ sites.

From April 2018, the national living wage will rise from £7.50 to £7.83 per hour.

From January 2018, corporate indexation of capital gains will be frozen bringing corporate and personal capital gains in line, creating a more level playing field.

The planned switch from the retail prices index (RPI) to the consumer prices index (CPI) in terms of calculating business rates relief will be brought forward two years to April 2018 which is estimated to save businesses £2.3 billion over the next five years. In terms of boosting innovation, the government announced it would allocate a further £2.3 billion for investment in Research and Development (R&D). It plans to fund an increase in the Research and Development tax credit to 12 per cent. It also wants to increase the number of UK tech businesses and is setting up a new ‘Regulators’ Pioneer Fund’ and is doubling the Enterprise investment Scheme (EIS) investment limits from £1m to £2m for knowledge intensive companies. The proposed fuel duty rise scheduled for April 2018 has been cancelled which is good news but not so for company cars using diesel which will incur a 1 per cent increase in company car tax from April (white van men and women don’t worry - you’re excluded!).

From April 2018, the Vehicle Excise Duty (VED) rate for diesel cars will go up by one band. In contrast, it would appear further incentives are on the way for electric cars including no benefits-in-kind for those charging up their electric cars at work!

…And finally, the chancellor has promised to keep the VAT threshold at £85,000 for the next two years which, in my opinion, is far too low as it simply increases the accounting and compliance costs to small businesses which are the backbone of our economy!

Jon Hook, managing director at Norwich Accountancy Services, sponsors of this column, is on 01603 630882 or www.norwichaccountancyservices.co.uk

Latest Property Articles

Renters with pets say they are victims of discrimination when searching for rental property.

Need some insider knowledge from a Norfolk interior designer? Read Louise Ives-Wilkinson’s trade secrets and save money on your DIY...

How easy is it really to renovate a property from scratch? Property editor Caroline Culot went to see Norwich graphic designer Vish Joory who has just bought a terraced house in need of a complete renovation and restoration.

Does your home or office leave you feeling a bit uninspired? Property editor Caroline Culot asked interior designer Louise Ives-Wilkinson for some ideas based on actual projects.

It may be Daniel Day-Lewis who is up for an Oscar for his role in the stylish new film the Phantom Thread – but the real, understated star is the beautiful Georgian mews house the story is set in, which is for sale in London for offers in excess of £15 million. Property editor Caroline Culot finds a Norfolk equivelant!

Have you joined the self-build revolution?

Joe Pattinson, from Newbury New Homes, asks whether greedy developers will be penalised?

One of the oldest buildings in Wymondham where 41 Tudor heraldic wall shields were discovered in its restoration is now for sale with the historic relics preserved behind glass.

Norwich is set to benefit from nearly £1m in funding to clear a brownfield site ready for up to 250 new homes.

The iconic pink house on Pottergate is on the market.

A rare opportunity to buy the former Port and Haven commissioner’s office on South Quay, Great Yarmouth, has arisen.

A parish councillor fears there is little which can be done to stop 283 homes from being built to the east of Norwich.

The chief executive of Weston Homes says he is committed to redeveloping Norwich’s Anglia Square.

Lots of luxury homes were snapped up across the county last year.

In an age when some estate agents are here today, gone tomorrow, to be operating after 25 years in the business is somewhat an achievement. So there is much to celebrate at Bycroft Estate Agents in Great Yarmouth as property editor Caroline Culot found out when she visited Charles Bycroft and his son, Daniel.

April 6 last year marked the introduction of the profound changes to the taxation of buy-to-let investments, leaving landlords scrambling around trying to protect themselves from higher tax bills due to the reduced deductibility of mortgage interest.

Coming down the pike (yet another) new law seemingly to further bash already well beaten up landlords. Recently, the bill to allow tenants to sue their landlords where their home is not fit for purpose was debated in Parliament and passed with flying colours by MPs across all political divides. It is expected the resultant law will be up and running by the end of this year.

This is one bus you really do want to catch! Blakey’s is a 1956 Lodekka double decker which has been converted into a tea room which has been serving afternoon cakes and brews on the Common, Mulbarton, Norwich, since it opened in 2016.

A £48m project to build more than 300 new homes just a stone’s throw away from Norwich City Football Club’s Carrow Road stadium could be about to take a major step forward.

Bad mould? Leaking roof, or made homeless? We want to hear from you if you have had any problems with housing.

Norwich has missed out on £55m and lost more than 900 council homes because of the government’s Right To Buy scheme, council leaders have said.

The Norfolk Broads is one of the biggest attractions for people wanting to move to the county, says Sheron Harley, from the Property Shop.

In years gone by, the start of the year was traditionally when estate agents could ease slowly back into work after the Christmas break, safe in the knowledge that most people would leave it until the first green shoots of spring before thinking about putting their house on the market, or starting to look for their next dream home.

Most boys love their toys but when you’re a top professional football player, you can afford very large toys and an even larger house in which to play with them!

Councillors have approved plans for 71 new homes in Drayton and a further 20 in Little Plumstead.

A Broadland councillor said plans for a new supermarket in Taverham were none of Norwich City Council’s “business” following its objection to the scheme.

Plans for a petrol station near Norwich have been turned down after councillors heard there was a “real risk” the city’s drinking water supply could become contaminated.

Plans for a drive-through KFC and Starbucks in the heart of the Postwick Hub have been recommended for approval by council officers.

Construction of a 163-home development in Blofield could begin this summer should it receive planning permission.

Twenty new homes and an extension to a school car park are proposed for the former hospital site in Little Plumstead.

Residents of a new estate in a Norfolk market town have branded a massive ’soakaway’ pit which they say was dug in front of their homes without notice a dangerous death trap.

New showhomes were launched today in Threescore, Bowthorpe at what is the largest ‘passivhaus’ development in the UK.

Showhouses at a new Norfolk Homes development in Hemsby are available to view this weekend.

We’ve mapped the latest price paid data from the Land Registry Office to give a snapshot of the Norfolk property market.

With the recent reshuffle in the government concerning housing, how could this affect the rental industry? Mike White, from Martin & Co, discusses.

Choosing the right conveyancer is part of prearing to buy and sell a home, says Julie Crowder-Barr, from Spire solicitors

Louis de Soissons, head of Savills’ Norwich residential team, offers some tips on selling in winter

A woman from Norwich has been left without heating for over 10 weeks during the coldest part of the year.

Buy now as house prices will rise, advises Keith Hood of Warners Financial Services

Moving into a new home could drastically reduce your energy bills, says Alison Page from David Wilson Homes.

A petition calling for housing to only be built where it is easily accessible by foot or by public transport is to be launched today.

They were legends of their day. The riders who roared around the city’s speedway track, cheered on by as many fans as now pack into Carrow Road to watch Norwich City.

David Wilson Homes built 517 homes in the Eastern Counties last year, contributing over £85.1m to the economy, a new report reveals.

Meet the Editor

Caroline Culot


I am the property editor in charge of delivering some exciting and informative content within Archant’s varied titles. We have 16-17 pages of stories, features and columns in the EDP Property supplement out every Friday free in your EDP so please don’t miss it.