GDP growth forecast

2017-18

1.5%

2018 -19

1.4%

2019-20

1.3%

2020-21

1.5%

2021-22

1.6%

 

Inflation

Annual rate of CPI inflation forecast to fall from peak of 3% to 2% in the year.

 

Public sector net borrowing as % of GDP

2017-18

2.4%

2018-19

1.9%

2019-20

1.6%

2020-21

1.5%

2021-22

1.3%

 

National debt as % of GDP

2017-18

86.5%

2018-19

86.4%

2019-20

86.1%

2020-21

83.1%

2021-22

79.3%

 

Business rates

From April 2018, increases in business rates will be pegged to CPI instead of RPI.

 

Tax and NIC

SDLT abolished for first-time buyers of property up to £300,000. First-time buyer of property less than £500,000 will pay no SDLT on the first £300,000

Personal allowance to rise to £11,850 in April 2018 and threshold at which higher-rate tax is charged to increase to £46,350.

No benefit in kind for electric cars charged at work.

R&D tax credit raised to 12% for large company scheme.

VAT threshold for small business to remain at £85,000 for two years.

Freezing indexation allowance for Capital Gains Tax from January 2018.

Digital economy – from April 2019, income tax will be applied on royalties on UK sales paid to low-tax jurisdictions.

Government is also looking at a split VAT payment model to reduce online VAT fraud and improve VAT collection.


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