The Budget 2017: April 2017 Changes
We know that there are going to be several changes coming into affect this April. The BBC have put together a list of what we already know is coming later this year - although it is sooner than you would think. April is only a month away.
What we already knew:
A long list of changes, announced in previous Budgets and Autumn Statements will come into force in April or the subsequent months. They include:
1. The amount you can earn before paying income tax - the personal allowance - is currently at £11,000 and will go up to £11,500.
The government has promised this will rise to £12,500 by 2020-21.
The threshold for higher rate will go up from £43,000 to £45,000, except in Scotland (owing to devolved powers) where it will be £43,000.
2. Many working-age benefits remaining unchanged for a second year, as part of a four-year freeze.
These include Jobseeker's Allowance, Employment and Support Allowance, some types of Housing Benefit, and Child Benefit. However, state pensions, Maternity Pay and some disability benefits are excluded.
3. The launch of a new Lifetime Individual Savings Account (LISA) for those aged between 18 and 40. They can save up to £4,000 a year, and the government will add a 25% bonus if the money is used to buy a home or as a pension from the age of 60.
4. The start of a gradual process allowing people to pass on property to their descendants free from some inheritance tax
5. Any family which has a third or subsequent child born after April will not qualify for Child Tax Credit, which can be more than £2,000 per child. This will also apply to families claiming Universal Credit for the first time after April.
6. The family element of child tax credits, worth £545 per year, will be abolished. So families in which the eldest child is born on or after 6 April will not receive this payment.
7. Many buy-to-let landlords will see the amount of tax relief that they can claim on mortgage interest payments cut over the course of four years from April. They will only be able to claim at the lower rate of tax, not the higher.
8. The National Living Wage will rise from £7.20 to £7.50 in April, for those aged 25 and over. Public sector pay has already been set at a 1% annual rise each year until 2019-20.
9. The amount that can be saved in a tax-free Individual Savings Account (ISA) is rising from £15,240 a year to £20,000.
10. Salary sacrifice restricted for items such as computers, gym membership and health screening.
11. Fuel duty will be frozen for a seventh year, but the cost of vehicle insurance may rise owing to an increase in the Insurance Premium Tax from 10% to 12% in June.
12. New Vehicle Excise Duty (VED) bands are to be introduced for cars registered from April - zero, standard and premium.
13. In May, probate fees will change, costing significantly more for large estates.
14. Inflation-linked rises that mean a pint of beer will cost 2p more from Monday, wine will rise by 10p a bottle and a bottle of whisky will go up by 36p.
