FOR ADVISERS ONLY

2017 Autumn Budget Summary

Philip Hammond delivered his first Autumn Budget on Wednesday 22 November 2017.

Our view

Good to see no tampering this year to pension tax relief, although it would have been good to see a boost to take-home pay in April 2018 (for example through much higher personal allowance) to cushion the impact of auto enrolment contribution rise increases.

Here’s our summary of the proposed changes with links to Treasury documents if you would like more detail.

Income tax

3.5 of HM Treasury Autumn Budget 2017

The personal allowance will increase to £11,850 from 6 April 2018 and the point at which the higher rate of Income Tax will apply will increase to £46,350 from 6 April 2018. The Scottish Parliament will set the basic rate limit for Scotland.

Pensions

3.23 of HM Treasury Autumn Budget 2017

The lifetime allowance for pensions will increase by CPI to £1,030,000 for 2018/19.

There were no changes to the annual allowance in the Autumn Budget 2017.

ISAs

3.22 of HM Treasury Autumn Budget 2017

The annual ISA subscription limit will remain at £20,000 for 2018/19. The limit for Junior ISAs and Child Trust Funds will increase by CPI to £4,260.

Trusts

3.9 of HM Treasury Autumn Budget 2017

The Government will publish a consultation during 2018 on how to make the taxation of trusts simpler, fairer and more transparent.

Useful links

Tax