Budget 2018Back to News
The Chancellor Philip Hammond delivered his budget yesterday and joked that he had avoided giving his speech on Halloween itself as it would have been too tempting for the caption writers.
Fiscal Phil’s budget was focused on the “strivers, grafters and carers” and for “Britain’s future”. He repeated again and again that “the British peoples hard work has paid off” and the fiscal rigour of the past eight years has allowed him at last to share out some of the benefits.
It’s concerning that eliminating the deficit and ultimately the debt continues to be pushed further down the road. Our national debt now stands at £1.75 trillion a figure so significant, we cannot rely on it just inflating away. Returning the public finances to surplus must continue to be a priority.
Here are some of the key tax announcements:
- Personal allowance raised to £12,500 and the higher rate threshold increased to £50,000 fulfilled a year earlier in 2019/20.
- Annual Investment Allowance for plant & machinery increased to £1m for two years from 1 January 2019.
- Entrepreneurs Relief rules tighten up with an extension of the qualifying period from 12 months to 24 months.
- New capital allowance for the construction of commercial buildings introduced.
- Off payroll working (IR35) reforms extended to the private sector from April 2020.