BU DGET BR I EF I NG NOT E

22 NOV EM BER 2017

AUTUMN BUDGET 2017

The chancellor has delivered his first Autumn Budget. This focussed heavily on the wider economic position
for the country, with a number of positive initiatives targeted at the housing market. There were no significant
changes that affect mainstream investments or pensions.

TAXATION
From April 2018, the personal allowance will increase to 11,850, with the basic rate tax band of 34,500;
higher rate tax threshold will be 46,350.
The starting rate tax band remains at 5,000 for savings income. The rates of income tax remain unchanged.
The government intends to publish a consultation in 2018 on how to make the taxation of trusts simpler, fairer,
and more transparent.
The government will also consult on the tightening of IR35 provisions for contractors and may extend what they
have done in the public sector to the private sector.
Corporation tax indexation allowance for capital gains for corporates will be frozen from 1 January 2018,
although indexation relief will continue to apply for disposals after 22 November until 31 December 2017.
We are currently working through the implications of this and will provide an update in due course.
Capital Gains Tax the Capital Gains Tax annual exemption will increase to 11,700, and the annual
exemption generally available to trustees will increase to 5,850 from April 2018.
Inheritance Tax the government has commissioned, and received, research to understand the motivations,
behaviours and attitudes underlying decisions made by individuals on Inheritance Tax matters and the use of
reliefs and exemptions in that process.

PENSIONS
Despite significant speculation that there would be changes that might adversely affect pensions, there has been
no change made to tax relief on pension contributions or the Annual Allowance. The increase in the Lifetime
Allowance in April 2018 to 1,030,000 (in line with Septembers Consumer Prices Index (CPI) rate) has been
confirmed.
The rates for full single tier state pension has been confirmed as 164.35 (4.80 increase). The basic state pension
will increase by 3% to 125.97.
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 ISAs
The ISA annual subscription limit for 2018-19 will remain unchanged at 20,000. The annual subscription limit
for Junior ISAs and Child Trust Funds for 2018-19 will be increase in line with CPI to 4,260.

ENTERPRISE INVESTMENT SCHEMES ( EIS ), SEED ENTERPRISE INVESTMENT

SCHEMES ( SEIS ) AND VENTURE CAPITAL TRUSTS ( VCT )
New measures are to be introduced to the EIS, SEIS and VCT rules to exclude substantially tax-motivated
investments, where the tax relief provides most of the return for an investor with limited risk to the original
investment. The condition depends on taking a reasonable view as to whether an investment has been structured
to provide a minimal risk return for investors.
In addition, the chancellor also announced the annual limit for individuals investing in knowledge-intensive
companies under the EIS will be increased to 2 million, provided that anything above 1 million is invested in
knowledge-intensive companies.
Technical details on this will follow over the coming weeks and we will provide you with further information
when more details are announced.

Please note that these investments are suitable only for experienced, sophisticated or high net worth investors who accept
that they may get back significantly less than the original investment.
These represent a much higher risk than investing in larger well established listed companies listed on the FTSE All Share
Index and are inherently more illiquid.

STAMP DUTY
The government announced that it will exempt first-time buyers from Stamp Duty Land Tax on properties up to
300,000; this exemption is also available for the first 300,000 on properties up to 500,000. This is effective
from today (22 November).

The value of an investment with St. Jamess Place will be directly linked to the performance of the funds selected and may
fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual
circumstances.

The St. Jamess Place Partnership and the titles Partner and Partner Practice are marketing terms used to describe St. Jamess Place representatives.
Members of the St. Jamess Place Partnership in the UK represent St. Jamess Place Wealth Management plc, which is authorised and regulated by the Financial Conduct Authority.
St. Jamess Place Wealth Management plc Registered Office: St. Jamess Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP.
Registered in England Number 4113955.
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