Budget Summary Spring 2017
Chancellor Philip Hammond’s first, and last, Spring Budget was delivered at a pivotal moment for the UK as it readies itself to begin the process of leaving the EU.
The Chancellor will announce a second Budget in the autumn as the Treasury changes to the new financial cycle from 2018. However, his first offering of 2017 contained several significant measures:
• The dividend allowance will be cut from £5,000 to £2,000 from April 2018.
• Self-employed workers will see their Class 4 national insurance contributions (NICs) increase by 1% to 10% in April 2018, with a further percentage point rise to 11% from April 2019. The government had previously announced that Class 2 NICs will be abolished from April 2018.
• The individual savings account (ISA) allowance will rise to £20,000 in April 2017 as previously announced.
• The Chancellor confirmed the launch of a new NS&I investment bond from April 2017 that will pay a 2.2% rate over a three-year term on deposits of up to £3,000.