child mortarboard gbp briefcase bath coffeecup tree twitter search crosshair fax house papers sort house-pound brochure list-items notes printer video-camera video virtual-video bath bed camera floorplan heart-empty heart-filled heart-empty-thin heart-filled-thin sofa calculator compass share clock list map-pen map-pin pencil save business-card letter phone heard people pointer cross linkedin google-plus facebook arrow-right close triangle-down my-wink my-wink-thick house-circle loading-spinner bell close-circle dog link pinterest school transport wardrobe arrow-up one two three four five six seven tick

Five minute guide: Spring Budget 2017

Five minute guide: Spring Budget 2017 After a hard year for landlords and second home buyers, many people were hoping that the Chancellor of the Exchequer Philip Hammond might give the housing market a lift today...

But his desire to reduce the UK’s £1.7 trillion national debt, he said, meant that despite lower projected government borrowing this year he wanted “to continue with our plan, undeterred by any short-term fluctuation”.

Consequently, opportunities to lessen the tax burden, and offer first time buyers more incentives to get on the property ladder – although hoped for – did not materialise.

Nevertheless, there were several key changes to taxation that may significantly impact millions of people from all walks of life. Here is our five minute round-up on points concerning the property industry and personal finance.
 

Personal tax allowance

On the plus side, Hammond announced that the Personal Tax Allowance is to rise from £11,000 to £11,500 while the higher-rate tax threshold – above which earners pay the top rate of tax – will increase to £45,000 next month.

However, the Spring Budget 2017 was not such good news if you are self-employed or the director of a company.
 

National Insurance contributions

National Insurance payments for those who are self-employed are to rise from 9% to 10% next year, and then to 11% in 2019. Hammond said this was meant to bring their contribution closer to those of employees, who pay NI contributions of 12% on their salaries.

“An employee earning £32,000 will incur between him and his employer £6,170 of National Insurance Contributions,” he said.

“A self-employed person earning the equivalent amount will pay just £2,300 – significantly less than half as much.”
 

Directors’ dividends

Directors of companies will also pay more tax soon. The tax-free allowance that company directors enjoy on dividend payments of £5,000, is to be cut in half to £2,500. This will also affect savers with share portfolios worth more than £50,000.

These measures may cause some issues for landlords, including those who set up companies to reduce the impact of the mortgage interest change made last year.
 

Childcare

But the Chancellor did find spare cash to help those with children. On top of the recently-announced introduction of Tax-Free Childcare payments of up to £2,000 towards the care of children up to 12 years of age, Phillip Hammond revealed that those with three and four-year-olds would get their childcare allowance doubled to 30 hours a week.

If any of this affects you, speak to your local agent for their expertise and advice as they will be able to guide you on current market conditions and talk you through the best options for you.

 

Related posts

Brexit relief brings back buyer confidence

Following developments at the end of March signalling a softer exit from the EU, Winkworth has seen a significant increase in buyer interest, with 26.8% more applicants registering* since 22nd March.  Winkworth also reports a 23.5% rise in sales agreed** over the same period, putting this down to a surge in confidence now that a softer Brexit is more likely and people are deciding to...

Read post

May 10, 2019

How to go about building an extension

Building an extension can be a sure fire way to add space and value to your property. From planning permission to costs, here’s what you need to know.

Read post

May 03, 2019

Winkworth Guide: The true cost of moving house

We can all agree that buying a house is a huge financial commitment, so it’s important to have an understanding of the costs involved in order to make the process as smooth as possible. Although your mortgage is by far the biggest financial outlay you make, it is by no means the only one.

Read post

April 15, 2019

Find your Local Office

Find your Local Office

Speak to people who, quite simply, love their patch and love what they do.

Get a Free Valuation

Get a Free Valuation

Thinking of selling or letting your property, or just interested to know what it is worth nowadays?