What is in Budget 2018? Stamp Duty, Personal allowance, tax, public spending and more
CHANCELLOR Philip Hammond announced his Autumn Budget on Monday in what is the final budget before the UK leaves the EU. But what changes in tax and spending has it brought in?
Budget 2018: Hammond announces £675m for UK high streets
Stamp Duty
Stamp Duty has been abolished for all first time buyers of shared ownership properties valued up to £500,000.
To qualify for the stamp duty previously given in 2017, first-time buyers of shared-ownership homes priced up to £300,000, had to elect to be taxed on the full market value of the home rather than only the share they were buying.
If the full market value of the shared-ownership property was more than £500,000, the buyer would not have been eligible for any stamp duty reduction at all.
Personal allowance
The personal allowance threshold, the rate at which people start paying income tax at 20 percent has risen.
Earners will start paying tax after £12,500 in April, compared to the £11,850 the previous financial year.
Philip Hammond announced the change in income tax in today’s Budget, which come a year earlier in April rather than 2020.
NHS
NHS funding in England is to increase by £20.5bn over the next five years, Mr Hammond announced.
The Chancellor has made a commitment to mental health crisis services in all England’s major A&Es.
The NHS 10-year Plan will include a new mental health crisis service, with comprehensive mental health support available in every major A&E, and children and young peoples’ crisis teams in every part of the country.
Business rates
Business rates will be cut by a third for two years for shops, pubs, restaurants and cafes in England with a rateable value of £51,000 and under.
The aim is to relieve small retailers who have been threatened by high rates and the rapid rise of online shopping, as many high street chains have been forced to close.
A £675 million Future High Streets Fund co-funded by the Government has been promised by Mr Hammond to help councils improve local high streets.
Digital tax
Technology giants, such as Google, Amazon and Facebook, will be forced to pay tax in the UK.
The ‘digital services tax’ is aimed to tackle the issue of tech giants not paying their fair share in UK tax.
Mr Hammond demanded the multi-million bound companies “pay their fair share” and the measure if forecast to raise £400m a year.
Fuel
Fuel duty has been frozen for the ninth consecutive year saving drivers hundreds.
The tax on fuel currently stands at 57.95p per litre of petrol, diesel, biodiesel and bioethanol.
Alcohol
The duty on beer and cider has been frozen, as has the duty on spirits.
This means in a saving of two pence a pint, one pence on cider and 30 pence on a bottle of Scotch or gin.
However wine drinker will be hit by an increase on duty, as wine rises in line with inflation, adding seven pence to a bottle of wine and nine pence to bottles of fizz.
Tobacco
The cost of cigarettes will soar above £10 as Mr Hammond increases the tobacco tax.
The Chancellor is increasing the tobacco duty by two per cent above September’s inflation rate of 2.4 percent, which adds about 24p, excluding inflation to a pack of cigarettes.
The average pack of cigarettes costs £9.91, according to figures from Statista.