There was welcome news for many taxpayers in the form of an increase to the personal allowance. This will rise from its current level of £11,000 to £11,500 from April 2017. And Mr Hammond said that the Government remained committed to raising it still further (to £12,500) by the end of this Parliament.
Meanwhile the starting point for the 40p rate will increase to £50,000 over the course of the same period.
As regards National Insurance (NI), from next April the employee and employer thresholds will be aligned at £157 a week.
There was good news for the nation’s motorists, with the announcement that the Treasury would be cancelling the proposed rise in fuel duty for the seventh year running. On average this is calculated to save car drivers £130 a year and van drivers £350.
However, insurance premium tax will rise to 12 per cent (up from 10 per cent) which some have suggested is likely to wipe out any savings arising from the crackdown on fraudulent whiplash claims.
Tax savings relating to salary sacrifice and benefits in kind are also to come to an end, although exceptions will be made for pensions, childcare, cycling and ultra-low emission vehicles.
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