We have pleasure in attaching our summary of the key announcements in the Chancellor’s 2017 Spring Budget statement. We hope you find it useful and interesting.
Chancellor Philip Hammond’s first, and last, Spring Budget was delivered at a pivotal moment for the UK as it readies itself to begin the process of leaving the EU. The Chancellor will announce a second Budget in the autumn as the Treasury changes to the new financial cycle from 2018. However, his first offering of 2017 contained several significant measures:
The dividend allowance will be cut from £5,000 to £2,000 from April 2018.
Self-employed workers will see their Class 4 national insurance contributions (NICs) increase by 1% to 10% in April 2018, with a further percentage point rise to 11% from April 2019. The government had previously announced that Class 2 NICs will be abolished from April 2018.
The individual savings account (ISA) allowance will rise to £20,000 in April 2017 as previously announced.
The Chancellor confirmed the launch of a new NS&I investment bond from April 2017 that will pay a 2.2% rate over a three-year term on deposits of up to £3,000.