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Kirk Rice Blog

2017 Spring Budget – How Will It Affect You?Written on March 9, 2017 by Kirk Rice LLP

2017 Spring Budget – How Will It Affect You?

As Chancellor Philip Hammond had said last Autumn this was going to be his first, and last (probably or maybe), Spring Budget. The Chancellor will announce a second Budget in the autumn as the Treasury moves to the new financial cycle from 2018. This marks the start of a process enabling Parliament to scrutinise tax changes well before the tax year where most will take effect.

There were really very few measures in the 2017 Spring Budget, which is maybe not surprising as the UK is about to begin the process of leaving the EU. A wait and see Budget then, with probably a lot more to come in the Autumn Budget when Brexit talks are underway.

There were some lighthearted moments from ‘Spreadsheet Phil’, as he has become known, at the expense of the Opposition parties, as he was standing at the despatch box (the joke-o-meter registered seven during his hour-long address).  But beyond the laughs from the government benches combined with Opposition scowls, the Chancellor sent out some fairly serious messages.

For starters, as part of a fiscally-tight Budget there was the Chancellor’s decision to target the self-employed, company owners and investors in a bid to raise billions of pounds and provide a “strong and stable platform” for the UK’s negotiations as it navigates a path away from the EU. A Brexit savings account which seems a bit of a nonsense when the country has nearly £2 trillion of debt.

There were some more measures, predictably, on anti-avoidance.

He also proposed to enhance the fairness in the UK’s tax system with a view to transforming the economy into one that works for everyone. This involves taxing people the same for doing the same work whether they are employed, self employed or work through their own companies. I would expect to see a lot more to come in the next Budget. People who are wanting to incorporate rental properties to maintain tax reliefs should take note of this style of proposal.

Surprisingly, there was no mention of pensions in the Budget, but with ISA allowances set to be worth £20,000 a year from April 2017 and a reduction from £5,000 to £2,000 in the tax-free dividend allowance from April 2018, here are some opportunities where our financial services team can demonstrate their expertise admirably to clients.

Throw in the need for businesses to seek out rates advice on their premises following the impending changes to the system, combined with the relief measures announced by the Chancellor, and the 2017 Spring Budget could prove a Spring-board to the forging of robust relationships between advisers and clients.

Perhaps there is a lack of overall vision in the 2017 Spring Budget, but I would expect the vision to become clearer once Brexit talks are underway and we can see their direction of travel. It will also be interesting to see what comes out of the Chancellors joke book to help buff up his Autumn Budget announcements…

Click here to read our Full Spring Budget 2017 Review

We trust that you find the 2017 Spring Budget Review useful; if you have any questions about it’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please get in touch with Graham Jennings in our Ascot office on 01344 875 000, Hadley Baldock in our Putney office on  0208 789 8588 or Peter Sharratt our Financial services partner on 01344 875 000 or email info@kirkrice.co.uk.

If you would like to receive Kirk Rice’s Financial Services or Tax Questions regularly by email, simply email info@kirkrice.co.uk stating Money Matters & Taxing Times in the subject heading and we will add you to our distribution list.

Please note: answers are given for general guidance only and specific advice should be taken before acting on any of the suggestions made.

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