Last month, the Chancellor of the Exchequer announced the autumn budget. There were some changes to personal allowance, stamp duty and Shared Ownership and to the Help to Buy housing scheme. We take a look at how some of these things might affect you.
Money, Tax and Savings
The Personal Allowance – the amount you earn before you have to start paying income tax– will increase by a further £650 in April 2019 to £12,500.This rise comes a year earlier than planned, and will be maintained in 2020. This means a basic rate taxpayer will pay £1,205 less tax in 2019-20 than in 2010-11.
The amount people will have to earn before they pay tax at 40% will increase from £46,350 to £50,000 in April 2019.This means that in 2019-20, there will be nearly 1 million fewer higher rate taxpayers than in 2015-16.
National Living Wage
The level of the National Living Wage (for worked aged 25 and over), currently £7.83 an hour will rise to £8.21 an hour in April 2019. This increase is moving at a faster rate than the rising cost of living.
Fuel and Alcohol Duty
In 2019, fuel duty will remain frozen for the ninth year in a row, saving the average driver £1,000 since 2010. Beer and cider duty was also frozen alongside the tax on spirits. Tax charged on wine will rise in line with inflation.
Mortgages and Home-Buying
In last year's Autumn Budget, the chancellor abolished stamp duty (a tax you pay if you buy property or land) for first-time buyers buying a home worth up to £300,000. This year stamp duty was also abolished for first-time buyers of shared ownership properties - when someone buys between 25% and 75% of a home and then rents the rest of it.
It will apply to all shared ownership homes worth up to £500,000 and backdated to anyone who has bought one since last year's Budget. Read more about shared ownership here
Help to Buy Scheme
The Budget also announced that the Help to Buy scheme, which was originally due to end in April 2021, has been extended but with a few changes. The new Help to Buy scheme works in a similar way but will only be available to first-time buyers and will feature new regional price-caps. For more details on the changes to the Help to Buy scheme visit here.