In our guide to the last Spring Budget, we review the Chancellor’s key announcements and outcomes, while considering the impact on you, your family and your business.
This Budget was the last one to take place in the spring. The Chancellor said last year that he wanted to simplify the whole business of setting taxes and government spending, which had become too complicated. So, Spring Budgets will again become autumn ones (the first will be later this year), while the other big set piece event, the Autumn Statement, will become a spring one (the first will be in 2018).
As the UK begins the formal process of exiting the European Union, this Spring Budget was relatively low-key, with many changes having already been announced. Opening his statement, Mr Hammond said the UK economy ‘continued to confound the commentators with robust growth’, and promised his Budget would provide a ‘strong and stable platform’ for the Brexit negotiations to come.
The Chancellor increased National Insurance for self-employed people. He also made provision for £2 billion for social care services in England, as well as offering additional help for firms impacted by business rate rises. Mr Hammond announced a reduction in the total amount of dividends company directors and shareholders can receive from businesses without having to pay taxes, from £5,000 to £2,000. He said the move was meant to ‘address the unfairness’ around the dividend tax advantage, which he claimed was ‘an extremely generous tax break for investors with substantial share portfolios’.
As predicted, there were improved economic forecasts via the Office for Budget Responsibility (OBR). On the economy, Mr Hammond said growth was expected to be higher – and borrowing lower – than forecast in November.
While the Chancellor resisted making far-reaching tax changes, some of the announcements could have an impact on your personal or business situation.
We hope you find our guide useful and informative. Click here to download a pdf version or view the online copy below.