Chancellor Philip Hammond presented his first Autumn Budget on 22 November 2017 but there was nothing new or radical included in this budget. The key announcement was abolishing stamp duty for first time buyers. Headlines for Northern Ireland included an extra £660 million added to the Northern Ireland Executive's Budget as well as a continuing commitment to giving the Northern Ireland Executive the power to set corporation tax rate once a restored Executive demonstrates its fiscal sustainability.
The key announcement was that Stamp Duty has been abolished for first time buyers on homes worth up to £300,000 with the balance of a home to the value of £500,000 taxed at 5%. This ties in with the announcement to tackle the housing affordability challenge in England with investment to boost the supply of land, resources and skills to build more houses in England. This could be an opportunity for Northern Ireland builders as the Chancellor specifically mentioned measures to assist SMEs who cannot access the finance they need to build and compete with the larger construction firms which are cornering the market.
The headlines for Northern Ireland are an extra £660 million added to the Northern Ireland Executive’s Budget, a review of the impact of VAT and Air Passenger Duty on Tourism for reporting in the 2018 Budget, continuing commitment to giving the Northern Ireland Executive the power to set the corporation tax rate once a restored Executive demonstrates its fiscal sustainability.
A Belfast City Deal was mentioned which would be welcomed as nearly all major cities in Scotland and Wales have already agreed City Deals. This could bring a welcome injection of investment in major regeneration projects to upskill people and improve transport infrastructure. The Chancellor also mentioned this being the first Northern Ireland City Deal. So hopefully other cities throughout Northern Ireland will follow Belfast’s lead.
The following sections look at the main areas in more detail. Click on the headings below to read more.
The government are proposing to reform the penalty system for late and missing tax returns. This will involve a new points-based system.
A PDF of our Summary of the Facts is available to download here.
Rates and Allowances Tables 2017/18 are available to download here.
If you have any questions about the 2017 Autumn Budget and how it may affect you and your business our Tax Team are here to help.
Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.