How does the Budget affect you?

Parliament3

Chancellor Philip Hammond’s November Budget outlined a number of proposals which will have a significant impact on families around the UK, as well as homeowners and those looking to buy a new home.

So, what did the Chancellor say and what will it mean for you and your family in 2018 and beyond?

Stamp Duty

Despite holding back his policies for the housing sector until the end of his speech, it is Philip Hammond’s announcements concerning stamp duty for first-time buyers that will hit the headlines.

The Chancellor spoke clearly about the government’s desire to ensure owning a home was a reality for as many people as possible. As part of this focus he announced an immediate end to Stamp Duty for first-time buyers on properties up to £300,000.

This change to stamp duty will also apply to the first £300,000 of first-time buyer purchases up to £500,000.

The measures, which take effect immediately, mean a Stamp Duty cut for 95 per cent of all first-time buyers who pay Stamp Duty and no Stamp Duty at all for 80 per cent of first time buyers from today.

Avant Homes group operating officer, Mark Mitchell, said: “The immediate abolition of Stamp Duty for first-time buyers will be welcomed by those in a position to buy and people saving up to make their first house purchase.

“Many young people have aspirations of owning their own home, and for many an end to Stamp Duty will go a long way to reducing their financial burden.”

Income

The National Living Wage is set to rise from £7.50 to £7.83 in April for those aged 25 and over, which for a full-time worker, will represent a pay rise of over £600 a year.

The personal allowance, which is the amount people can earn before they pay tax, will increase to £11,850 from April 2018. At the same time, the threshold for the higher rate will go up from £46,350.

According to the Chancellor, in 2018-19, a typical taxpayer with be £1,075 better off than they would have been in 2010-11.

Transport

The Chancellor made the announcement that vehicle excise duty (VED) will increase on diesel vehicles from April 2018, with the first-year VED rate for diesel cars that don’t meet the latest standards, going up by one band.

Further measures to promote clean air initiatives include £400m of funding for electric vehicle infrastructure. An extra £100 million will be used to incentivise people to buy battery electric cars.

The Chancellor also confirmed the introduction of the millennial railcard, which will give 4.5 million more young people, between 26 and 30, a third off their rail fares. Those who drive cars also received good news, with fuel duty rises scheduled for April 2018 cancelled for both petrol and diesel vehicles.

For news and advice on the latest financial and economic developments that could affect your household, visit the Money section of Avant Life.