Phillip Hammond set out his first Budget as Chancellor with the declaration that he was preparing the UK for a ‘new relationship with the European Union (EU) and a new Future outside of the EU’.

He took the opportunity, as many of his predecessors have, to take swipes at the opposition but jokes about Jeremey Clarkson and cough sweets aside, the Budget was filled with big proposals backed up with little detail and few notable changes.

The Budget made some big promises and time will tell if it can deliver. Here’s our run down of the key announcements that are likely to affect you:


The Chancellor set out the government’s intended actions to:

  • Support more affordable housebuilding for those who aspire to own their own home
  • Prepare for our exit from the EU
  • Become a leader in new technologies such as Artificial Intelligence, immersive, driverless cars, life sciences and Fin-tech
  • Provide the skills opportunities to succeed in the modern economy
  • Increase investment into the NHS to improve infrastructure
  • Provide short-term support for households

Income Tax

  • Incorporated property businesses now have the chance to claim a fixed rate per mile rather than capital allowances and deductions for actual expenses incurred
  • Double the £1m limit to £2m for investment in EIS qualifying companies if the company is a knowledge intensive company
  • From 6 April 2018 the supplement for diesel company cars will increase from 3% to 4%
  • The lifetime allowance for pension savings will increase with the consumer price index to £1,030,000 by 2018/19


  • Changes to legislation on the way asset managers receiving carried interest are subject to CGT on their full economic gain
  • Indexation allowance on corporate capital gains will be frozen from 1 January 2018
  • From April 2018, the annual exempt amount will increase to £11,700 for individuals and personal representatives and £5,850 for most trustees of a settlement
  • The government will defer the introduction of the 30-day payment window for gains on residential property disposals until April 2020.


  • Tightened rules around the online marketplace placing responsibilities on the seller and the hosting site to ensure VAT numbers are placed correctly
  • The registration and deregistration thresholds will remain at £85,000 and £83,000 respectively for a two year period ending on 31 March 2020


  • Increased vehicle excise duty from April 2018 in line with RPI
  • An increase to air passenger duty on long haul flights and premium seating but a freeze on short haul duty


  • Stamp Duty Land Tax has been abolished for first time buyers purchasing property up to £300k. Any properties up to £500k are exempt for the first £300k and then standard rates thereafter
  • Specific technical exemptions from the Higher Rates of SDLT

Corporation tax

  • Indexation allowance – for disposals of chargeable capital assets on or after 1 January 2018, indexation allowance will be calculated using the Retail Price Index for December 2017, despite the asset being disposed of at a later date
  • Intangible Fixed Assets corporation tax regime – the government will consult in 2018 on the corporation tax treatment of Intangible fixed assets and consider if there is an economic case for targeted changes to this regime
  • R&D expenditure credit for large companies – this will increase from 11% to 12% on 1 January 2018

Tax administration

  • Late submission penalties – the government plans to reform the penalty system for late or missing tax returns by adopting a new points-based approach
  • Certificates of Tax Deposit – the government will close this scheme for new certificates on and after 23 November 2017
  • Extension of security deposit legislation – the government plans to extend the existing security deposit legislation to cover corporation tax and Construction Industry Scheme deductions


  • National Living Wage – for those aged 25 and over will increase from £7.50 per hour to £7.83 per hour from April 2018
  • National Minimum Wage – will increase from April 2018 to apprentices £3.70 per hour, 16 and 17-year-olds £4.20 per hour, 18 to 20-year olds £5.90 per hour and 21 to 24-year-olds £7.38 per hour
  • Personal Allowance – will increase from April 2018 to £11,850 and the basic rate limit will also increase to £34,500
  • Individual Savings Account (ISA) – subscription limit will remain at £20,000 and Junior ISAs and Child Trust Funds will increase to £4,260
  • National Insurance – from April 2019 class 2 NIC will be abolished

For full details on how the Budget will affect you, download our Budget Summary report at