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Budget 2017

In his Budget speech of 21 February 2017, the Minister for the Treasury, the Hon. A L Cannan, MHK, announced various taxation and National Insurance measures.

Following the Budget, the Income Tax Division of Treasury published the following Practice Notes:

PN 195/17 - Budget 2017 - Income Tax and National Insurance Proposals

PN 196/17 - Budget 2017 - Cycle to Work Scheme - Benefit in Kind Exemption

Budget 2017 - Tax and National Insurance Headlines

  • The income tax personal allowance is increased to £12,500 for a resident individual and £25,000 for a jointly assessed couple.

  • The income tax lower rate for individuals remains at 10% and the higher rate at 20%.

  • The threshold at which the higher rate becomes payable is reduced to £6,500 for an individual and £13,000 for a jointly assessed couple.

  • The Age Allowance is reduced to nil.

  • The maximum amount for which tax relief can be claimed in respect of mortgage and loan interest paid will be £5,000 for the 2017/18 tax year. This amount is doubled for jointly assessed couples. Relief is granted on the amount claimed at the lower tax rate of 10%.

  • The maximum amount for which tax relief can be claimed in respect of nursing expenses is increased to £12,500 for the 2017/18 tax year. Relief is granted on the amount claimed at the lower tax rate of 10%.

  • The tax cap applying to any new elections commencing from the 2017/18 tax year remains unchanged at £125,000 per annum for an individual and £250,000 for a jointly assessed couple. For any elections commencing from the 2018/19 tax year, the maximum income tax liability for an individual will increase to £150,000 and £300,000 for a jointly assessed couple.

  • From 6 April 2017, a Personal Allowance Credit cannot be claimed for, or paid in respect of, an individual who has died during the tax year, providing that the death occurs on or after that date.

  • A benefit in kind exemption is introduced for employers providing employees with bicycles and related safety equipment for use between their home and place of work.

  • The Lower Earnings Limit for Primary Class 1 National Insurance contributions is increased to £113 per week.

  • The Class 3 National Insurance contribution is increased to £14.25 per week.

Treasury Pink Book 2017/18

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