EIS & SEIS Registration

Autumn Budget 2017


What is the big picture?

  • Economic Forecast
  • Brexit
  • Technology
  • Productivity

Brexit, most challenging time for small businesses in UK right now, uncertainty is not good for our economy which can also affect small businesses in short and long term. However it will also bring opportunities for smaller businesses therefore get ready.

Government is ready to invest into the Technology, there is £2.5 billion Investment Fund for innovative SMEs. There is also an Investment incentive available for artificial intelligence.

The big headline: Stamp Duty Limits

Up to £125,000: Current Standard rate 0% Rate for first-time buyers 0%
Over £125,000 and up to £250,000 Current Standard rate 2% Rate for first-time buyers 0%
Over £250,000 and up to £300,000 Current Standard rate 5% Rate for first-time buyers 0%
Over £300,000 and up to £500,000 Current Standard rate 5% Rate for first-time buyers 5%

  • You will not pay Stamp duty on the first £300,000 on property purchase (first time buyer)
  • Between £300,001 and £500,000 the standard 5% will apply
  • If your property is over £500,000 this exemption will not apply and will pay standard rates

Personal Tax and National Insurance overview

Personal allowance £11,500 (Now) £11,850 (Next Year)
Basic rate threshold £33,500 (Now) £34,500 (Next Year)
Tax free dividend £5,000 (Now) £2,000 (Next Year)

Dividend Tax! basic rate will be increased to £34,500 which will be taxed at 7.50% savings of £189 (including savings from personal allowances) in the next financial year compared to current year. There would be an additional tax on reduced tax free dividend which will result to an increase in dividend tax of £225. Overall there are no satisfactory tax saving for small business owners in 2018/2019.

Corporation Tax overview

  • Main rate of corporation tax remains at 19%, falling to 17% from 1 April 2020
  • Freezing of corporate indexation allowance from 1 January 2018
  • R&D tax credit increased from 11% to 12%

UK will be very competitive jurisdiction when corporation tax is reduced to 17% (from 2020). Good news for R&D.

Finance for long-term innovation

New £2.5 billion Investment Fund for innovative scale-up SMEs
Double annual allowance for EIS investments in knowledge-intensive companies
Transport Taxes

  • £220 million new Clean Air Fund for local authorities in England
  • Vehicle Excise Duty (VED) supplement for new diesel cars from 1st April 2018
  • Rise in Company Car Tax diesel supplement from 3% to 4%
  • No benefit-in-kind charge for electric vehicles for employees
  • Freeze on fuel duty