Todays Budget



Chancellor Philip Hammond announced his budget today, so we thought we’d look at how it will affect your personal finances.

Stamp duty

Stamp duty will be abolished for first-time buyers on homes worth up to £300,000, or the first £300,000 of a property worth £500,000. This will save £1,660‎ on the average first-time buyer property.

The Chancellor said 95pc of first-time buyers who paid stamp duty would benefit while 80pc of people buying their first home would pay no stamp duty.

 

Income tax

The personal allowance, the amount on which no tax is due, will increase from £11,500 to £11,850. The threshold at which the higher rate of tax applies, 40%, will rise from £45,000 to £46,350. This will happen from April 2018.

 

Car Tax

It was announced that diesel cars would face higher VED car tax charges for the first year. From April 2018 first year rate VED for diesel cars that don’t meet the latest emissions standards would increase by one band. This could mean up to £500 a year on first year rates of car tax. For example: to tax a car which emits 160g/km of CO2 you would pay £200 for the first year, but under the new tax rules you’d pay £500.

 

Alcohol 

Duties on spirits, wine and beer will be frozen, but the tax on “low-cost, low-quality” products such as “white cider” will increase in 2019. Mr Hammond said the freezing of duty on beer, whisky and wine would mean a pint of beer would cost around 12p less on average, and a bottle of whisky £1 less.

 

Cigarettes and tobacco

Duty on cigarettes and rolling tobacco is to rise. Duty rates on all tobacco products will increase by 2% above RPI inflation until the end of this parliament. Taxes on hand-rolling tobacco will increase by an additional 1%.

 

National Living Wage

This will increase from the current £7.50 an hour to £7.83 an hour from April 2018.