In the run up to the summer general election the Conservatives were asking for our vote, so we could have “Stability from Strength”
In the immediate aftermath of the election, when asked what I thought would happen, I said this was good for business as we could expect five years of “Stability from Weakness”. I explained that because the Government did not have a majority they could not introduce any controversial measures as they would be defeated and that from a fiscal point of view (Brexit excepted) we could expect five years of little change which in my opinion is good for business.
In the runup to the budget I told anyone who cared to ask my opinion (there were a few) that we could expect a quiet budget with very few changes.
And so it came to pass, one of the most insignificant budgets in recent past, and whilst previous budgets have been accompanied by mountains of press releases containing measures the Chancellor had chosen not to mention in his speech, there was little of that.
There was of course the usual raft of measures against perceived abuses by international businesses, but for those businesses in the UK very little change.
I will highlight a few changes that may affect our clients but I suspect none of these will affect decisions our clients make:-
• The benefit in Kind charge in respect of inefficient diesel cars will increase by an extra 1% of the car value per annum.
• The rate at which unused research and development losses can be turned into cash increases from 11% to 12%
• Unincorporated Property Owners can use a mileage charge against their business profits rather than apportioning their motoring costs.
• Indexation allowance available to Companies on the sale of assets will be frozen at the allowance due to January 2018.
In announcing that the basic rate band would go up to £46,350 and that personal allowances were going up by £350 to £11,850 the Chancellor pointed out that when the Conservatives came to power personal allowances were £6,475. I would be willing to put a bet on, that when we next go to polls it will be over £12,950, so they can say its doubled.
Well after all that excitement I’m off to get a rest.
The view from the Wilds side