Budget Report 2017-18

11

Spring Budget 2017

Capital gains tax

On chargeable gains

2017/18

Total taxable income and gains

Up to higher rate threshold

10%

From higher rate threshold

20%

Trust rate

20%

Higher rates (18%/28%) may apply to the disposal of certain residential property and carried interest.

Annual exempt amount – individuals £11,300 and most trustees £5,650.

Value Added Tax (VAT) From

1 April 2017

Standard rate

20%

VAT fraction

1/6

Reduced rate

5%

Current turnover limits

Registration – last 12 months or next 30 days over

£85,000 from 1 April 2017

Deregistration – next 12 months under

£83,000 from 1 April 2017

Annual and Cash Accounting Schemes

£1,350,000

Flat Rate Scheme

£150,000

VAT Flat Rate Scheme

As announced in the Autumn Statement 2016, there will be a new 16.5% rate from 1 April 2017 for businesses with limited costs, such as many labour-only businesses. Anti-forestalling provisions have been introduced to prevent any business defined as a limited cost trader from continuing to use a lower flat rate beyond 1 April 2017.

Hoodwinked: in the early 1990s, Chancellor Norman Lamont famously presented a bag containing a bottle of whisky to the eagerly awaiting photographers- the speech was actually being kept in a plastic bag!

FOR ELECTRONIC USE ONLY

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