SPRING BUDGET 2017

Here is what landlords and property investors need to know:

The economy has confounded economists by it’s growth.

The Budget is a plan for a brighter future to Britain.

This is the last Spring Budget.

The deficit is down, but debt is still too high.

Too many families are still feeling the squeeze after the credit crunch nearly a decade ago.

We need to build an economy that works for everyone.

The OBR has upgraded it’s forecast for growth next year from 1.4% to 2%.

Resilience in the economy is reflected by 74.6% employment rate.

The number of people in employment will continue to grow.

Unemployment has fallen fastest in Yorkshire and Wales.

Inflation is predicted to remain around 2% for the next three years.

Mr Hammond says borrowing is forecast to be £16.4bn lower than forecast in the autumn.

Our debt is the equivalent of £62K for every household in the country!

A total of £1.7 trillion.We must continue with the plan to reduce national debt.

We want to make Britain to be the best place to start and grow a business.

Corporation tax will fall to 19% this April, and will then fall to 17% in April 2020.

We need to develop a digital tax system, but the introduction of this for businesses below the VAT threshold will be delayed for one year, following concerns raised by small businesses.

Three measures for the national business rates system:Any business coming out of small business rate relief will benefit from an extra cap – meaning their rates will not increase by more than £50 a month.

There will be a £1,000 discount on business rate bills for all pubs with rateable value of less than £100,000 – 90% of all pubs.

A £300m fund will be made available to councils to allow them to provide discretional relief.

Tax avoidance and evasion is high on the Government’s agenda.

There will be tough new penalties for people who “enable” tax evasion.

Those with the broadest shoulders should bear the heaviest tax burden.

The top 1% of income tax payers now pay 27% of all income tax.National Insurance – Consultation in summer to address the disparity between NICs of self-employed and employed.

From April 2018…the main rate of Class 4 NICs for the self-employed will increase by 1% to 10%, with a further 1% increase in April 2019.

Corporate taxation Hammond does not want people forming companies just to reduce tax!!

The tax free dividend allowance for company directors will be reduced from £5K to £2K from April 2018.

The personal allowance will rise for the seventh year in a row to £11,500.

New NS&I bond announced at Autumn Statement, will be available from April and will pay 2.2% on deposits up to £3,000.

Next year will see the introduction of the government’s flagship Tax Free Childcare policy.

We need to improve productivity.

We will invest in training and infrastructure.£300 million fund to support research and innovation talent.

£16 million for 5G mobile technology hub.

See – Slower broadband speed could hinder house prices & rentability …£690 million competition for local authorities to tackle urban congestion and get local transport networks moving again.

The Government will publish its “Midlands Engine” strategy tomorrow.See – Investing in Birmingham – now the most “investable” city in the U.K!

Care for the elderly is an increasing concern.

No mention of Section 24 or the housing market!