Guy Payne & Co

Helping you to help yourself.

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2017 Budget highlights

In terms of tax announcements the 2017 budget is relatively bare however does continue the theme of taking aim at self employed individuals and director owner companies.
  • The main rate of Class 4 National Insurance contributions to increase from current rate of 9% to 10% in April 2018 and 11% in April 2019
  • The tax-free dividend allowance will be reduced from £5,000 to £2,000 from April 2018
  • Personal tax-free allowance to rise as planned to £11,500 this year and to £12,500 by 2020
  • No changes to income tax, VAT or other National Insurance categories

2016 Budget highlights



  • The corporation tax rate will be reduced to 17% from April 2020.
  • The Small business rates relief threshold will rise from £6,000 to £15,000 (tapered from £12,000) from April 2017 and will result in c.600,000 small businesses being excluded from paying business rates.
  • A reform of Stamp Duty Land Tax on non-residential property transactions. This is expected to cut the tax for many small businesses purchasing property.
  • The recent biggest change to small businesses is the new dividends allowance that was announced in the 2015 Summer budget. For more details, please see our New Dividend Tax page.


  • The personal allowance will rise from £11,000 to £11,500 from April 2017.
  • The higher rate threshold will increase from £43,000 to £45,000 from April 2017.
  • Class 2 NIC for the self-employed will be abolished from April 2017.
  • A new £1,000 ‘digital’ tax free allowance will be introduced for individuals who sell services or rent property online from April 2017.
  • The recent biggest changes for individuals are the new rules regarding properties which were announced in the 2015 Summer budget. For more details, please see our Property Matters page.

Capital gains

  • Entrepreneurs relief to be extended to long term investors in unlisted companies.
  • Capital gains tax will reduce to 20% (from 28%) for higher rate taxpayers and 10% (from 18%) for basic rate taxpayers from April 2016. The reduction will not apply to residential property (i.e. buy to let) and carried interest.


  • The annual ISA allowance will increase to £20,000 from £15,420 from April 2017.
  • Lifetime ISA introduced – The under 40’s can save up to £4,000 a year and receive a 25% government bonus from April 2017 to save for retirement and/or to purchase their first home.


Other interests

  • Insurance premiums tax is set to increase by 0.05%.
  • Fuel & alcohol duty are both frozen whilst tobacco tax is increased.