There was not much that was new announced in the Chancellor’s November statement
but it is worth taking note of the key tax changes from the 6th of April 2017:
Personal Tax And Benefits Changing From 6 April 2017
• The Personal Allowance will increase from the present £11,000 to £11,500. (This is the amount
of money you can earn before you start paying any tax at all.)
• The amount you can earn over and above your Personal Allowance and pay only 20% tax will
increase from £32,000 to £33,500. (If you include the Personal Allowance from next April of £11,500, it means that you will have to earn in excess of £45,000 before you start paying 40% tax.)
• You will pay 40% from that level up to £150,000, and over £150,000 you will pay the Additional
Rate of Tax – 45%. (Note: If you earn £100,000 or more, your entitlement to a Personal Allowance
will be lost progressively until it is gone completely for those earning £122,000 or more.)
• The Individual Savings Account (ISA) contribution limit will rise from £15,240 to £20,000.
• The Government announced its intention to launch a savings bond with a £3,000 limit and an
interest rate expected to be about 2.2% over a three year period.
• We understand that the Rent-A-Room relief will continue at the level of £7,500 per annum.
This is income you can earn from letting a room in your personal residence which will not be
taxable if it is less than £7,500 in the year. If you have any questions how this works, go to
www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme.
