Autumn Budget 2017: Implications for SMEs

The Chancellor of the Exchequer, Philip Hammond, delivered his Budget Statement to the House of Commons on Wednesday 22 November 2017.

The 2017 Autumn Budget represents the first step in the government’s new Budget regime, which sees the main Budget now being presented in the Autumn, to be followed by a Spring Statement the following year.

Here are the key changes affecting you and your business:

  • The tax-free personal allowance will rise with inflation to £11,850 from April 2018
  • The Indexation Allowance for company capital gains will be abolished bringing the calculation in line with the treatment for individuals.  The Indexation Allowance takes inflation into account when calculating the capital gains of companies.  This will be frozen from 1 January 2018.
  • A planned cut to business rate rises has been brought forward by two years to 2018. Business rates will be increased in line with the lower Consumer Prices Index measure of inflation, not the Retail Prices Index
  • Royalties relating to UK sales from digital companies that are paid to low tax jurisdictions will be subject to UK income tax from 2019
  • The research and development (R&D) expenditure credit is to increase from 11 per cent to 12 per cent, which will benefit companies that have received R&D grants from the government and larger companies. SMEs are already entitled to a 33 per cent rate
  • The annual chargeable amounts for the Annual Tax on Enveloped Dwellings will be increased by 3 per cent from 1 April 2018
  • Capital gains on commercial property held by non-residents will now be subject to UK capital gains tax on gains accrued on or after April 2019
  • Rise in company car tax and vehicle excise duty on new diesel cars, but “white van man” will not be affected
  • Financial support for SME house builders over the next five years, planning reforms to make land more available, and financial support to train construction workers
  • Tax relief boost for “knowledge-intensive” companies, with the doubling of the Enterprise Investment Scheme investment limit
  • Abolishing stamp duty land tax on homes under £300,000 for first-time buyers from 22 November

For more detail relating to the Budget announcements and how they could affect you and your SME business, please download a copy of our Autumn Budget Summary Report. Throughout this guide we have included tips and ideas to assist you with effective tax and financial planning.

Our experts at Beavis Morgan are committed to helping ensure that your financial plans remain effective, even as your personal and business circumstances change, and we will work alongside you to help you achieve a rewarding and financially secure future for you and your family. Contact Alan Ford or your usual Beavis Morgan Partner for further information