Yesterday, Philip Hammond delivered the last official spring budget, outlining strategies and changes to help grow the economy and foster sustainability in preparation for Brexit. The Chancellor announced that £453m will be available for firms who were affected by the increases in business rates including a £300m hardship fund for the businesses who were hit the most.
It was also revealed that a tax avoidance clampdown totalling £820m will include actions to stop businesses converting their capital losses into trading losses and the North Sea oil producers are set to receive a tax review.
Also tax free dividend allowance dropped from £5k to £2k meaning an owner managed business with husband and wife shareholders can only take out £4k in dividends without paying tax after April 2018 as opposed to £10k in the current tax year.
Within the budget, it was identified that the UK economy is the second-fastest growing in the G7 during 2016 and growth for 2017 was upgraded from 1.4% to 2%. The Chancellor has said that this year’s budget has provided a strong and stable platform for Brexit which is due to start this year.