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The Autumn 2017 Budget and You

Nov 24, 2017

budget-header

The Autumn Budget has recently been announced – but how will the changes affect you? We take a look at a couple of the main changes and how this could impact on your finances.

Changes to Stamp Duty
Stamp duty is to be abolished immediately for first-time buyers purchasing properties worth up to £300,000. For properties up to £500,000, no stamp duty will be paid by first-time buyers on the first £300,000. Currently, the average house price is over £225,000 and average first-time buyer price sits at over £190,000. 

How could this affect you?
According to statistics, 95% of first-timer buyers will benefit from the cut with 80% of first-time buyers paying no stamp duty at all. The change will most benefit buyers looking to purchase in more expensive areas where homes up to the value of £300,000 would incur stamp duty costs of £5,000.


Changes to Tax and Wages

The tax-free personal allowance on income tax will rise from £11,500 to £11,850 in line with inflation in April 2018. The higher-rate tax threshold will also increase from £45,000 to £46,350.

The National Living Wage will rise in April 2018 by 4.4% from £7.50 an hour to £7.83.

How could this affect you?
Someone earning £30,000 a year will benefit from approximately an extra £100 a year. Higher earners on £50,000 a year gain approximately an extra £440


Pension Increase
The government has confirmed a 3% increase in the state pension for April 2018, in line with inflation.

How could this affect you?
The increase amounts to an extra £3.65 a week on basic state pensions to £125.95. People covered under the new state pension will see the full level of new state pension increase from £159.55 per week to £164.35 per week.

 

Figures from:

BBC Calculator: http://www.bbc.co.uk/news/business-17442946

Which: https://www.which.co.uk/news/2017/11/autumn-budget-2017-state-pension-to-rise-by-3/