Chancellor makes shock U-Turn! Cooper Curtis comment on Spring Budget

Last week saw Philip Hammond deliver his first Spring Budget as Chancellor. There were a few shock announcements on the day, one being the dividends allowance now reduced to just £2,000 from next year prompting some in-year tax planning for our limited company clients. 

After a heavy backlash from his opposition about tax rises, the chancellor has now abolished his plans to raise the Class 4 National Insurance from April 2018 one week after delivering his budget bringing a sigh of relief to many self-employed people. 

The changes proposed where the contractors IR35 status will be decided by the public body they are contracted with is still going ahead beginning from April 2017. 

If you have any questions regarding any topics covered in the Budget or would like any advice, please give us a call on 0845 303 1144 or email info@coopercurtis.co.uk.

 Please note, all our content is for general guideline only, every case is different and we would recommend speaking to us before taking any action as a result of the content. The content was correct at the time it was published.

Cooper Curtis Summer Budget Reflection and Highlights

There were some significant announcements following Wednesday's Summer Budget from the new non-coalition Government. It was a mixed week for companies, with the corporation tax rate falling to 18% by 2020 and a freeze on the Annual Investment Allowance at £200,000 encouraging business spending.

One of the biggest reforms announced in the budget will affect family companies paying themselves and spouses dividends up to the basic rate band. From April 2016, this may no longer be as tax advantageous with the abolishment of the notional tax credit and a dividend tax free allowance of only £5,000. We will wait to see how this will work once the draft legislation is released.

Buy to let landlords with large property portfolios will be stung with the restriction of higher rate tax relief on interest paid on mortgages. However, rent a room relief has been encouraged with a tax free amount rising from £4,250 to £7,500 in April 2016.

As expected, for high earners with income over £150,000, pension tax relief will be restricted and the Chancellor's war on Non-Domiciles means from 2017 they can no longer escape Inheritance Tax on UK held properties. 

Take a moment to read our full Budget Summary here

 

If you are concerned about anything covered in our Budget Summary or would like any further information, please contact Brian or Caroline on 0845 303 1144 or email info@coopercurtis.co.uk. 

Please note, all our content is for general guideline only, every case is different and we would recommend speaking to us before taking any action as a result of the content. The content was correct at the time it was published.