In case you didn’t know the Autumn Budget is set for 22 November. This will be Philip Hammond’s first Autumn Budget. The budget is a tricky time for any Chancellor, particularly as his own backbenchers can block plans they do not agree with, as what happened with the Class 4 National Insurance Contributions in the Spring Budget.
This does not constitute advice and advice should be sought in all instances before acting on it.
In this post, we discuss what you might see in this Autumn’s Budget. Obviously, it is just speculation and sometimes there are surprises.
Pensions
David Gauke, the Secretary of State for Work and Pensions, recently announced at a conference that he can foresee no ‘fundamental changes’ to the pensions tax relief.
What we may see though is a reduction in the pension annual allowance, which currently stands at £40,000.
Student Loans
Theresa May at the annual Conservative Party Conference in September pledged to freeze tuition fees at £9,250 per year. This was accompanied by an announcement to increase the repayment threshold from £21,000 to £25,000.
This is great news if you are a doctor or dentist who is recently graduated or if you have a child that is thinking of going to university.
There are rumours that universities may be forced to charge differing tuition fees based on the courses employment rate.
Investments
An area of investments that may face changes in the upcoming budget is Enterprise Investment Schemes (EIS).
Enterprise Investment Schemes provide a tax relief of 30% for investments that are held in high risk companies. They also provide Capital Gains Tax exemption on the disposal of the shares after a set period.
EIS’s are often seen as a way for the wealthy to avoid taxes. This scheme is currently under review. We may see the rate of tax relief reduced to 20%.
Housing
The newspaper the Evening Standard is predicting that the Chancellor, will announce plans to scrap Stamp Duty for first time buyers.
According to Rightmove, the average property price in London stands at £609,776, this move could save first time buyers a considerable amount of money, which they could use towards renovating or decorating the property.