THE AUTUMN STATEMENT!

There was not much that was new announced in the Chancellor’s November statement

but it is worth taking note of the key tax changes from the 6th of April 2017:

Personal Tax And Benefits Changing From 6 April 2017

• The Personal Allowance will increase from the present £11,000 to £11,500. (This is the amount

of money you can earn before you start paying any tax at all.)

• The amount you can earn over and above your Personal Allowance and pay only 20% tax will

increase from £32,000 to £33,500. (If you include the Personal Allowance from next April of £11,500, it means that you will have to earn in excess of £45,000 before you start paying 40% tax.)

• You will pay 40% from that level up to £150,000, and over £150,000 you will pay the Additional

Rate of Tax – 45%. (Note: If you earn £100,000 or more, your entitlement to a Personal Allowance

will be lost progressively until it is gone completely for those earning £122,000 or more.)

• The Individual Savings Account (ISA) contribution limit will rise from £15,240 to £20,000.

• The Government announced its intention to launch a savings bond with a £3,000 limit and an

interest rate expected to be about 2.2% over a three year period.

• We understand that the Rent-A-Room relief will continue at the level of £7,500 per annum.

This is income you can earn from letting a room in your personal residence which will not be

taxable if it is less than £7,500 in the year. If you have any questions how this works, go to

www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme.