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Phillip Hammond delivered his Autumn 2018 budget, which as things stand will be an historic one as it will be the last one before Brexit.

We have prepared a summary of the key points below:

Personal Tax  

  • From April 2019 the personal allowance will increase to £12,500 from £11,850
  • The upper limit threshold for national insurance will increase to £50,000 to £46,350 from April 2019.
  • The minimum period throughout which the qualifying conditions for this relief to be met is extended from 12 months to 24 months from April 2019.

Property Tax

  • Lettings relief is applied to capital gains tax arising on the sale of buy-to-let properties that was previously occupied by the owner at any point. From 2020 this relief will be restricted and will only be available to those sellers who are in shared occupancy with the tenant at the time.
  • Principle private residence relief will also be restricted from April 2020 to the final 9 months of ownership, it is currently 18 months. (This and the above is another blow from landlords, especially those who have properties where they have resided previously in their portfolio and this made need some forward planning, if this is going to affect you then get in touch for a free no obligation meeting.)

Business Tax

  • In 2017, new IR35 Rules was brought in to the public sector for contractors, which placed the responsibility on the companies to determine whether the contracts fall inside our outside of IR35. From 2020, this will be introduced to the private sector, initially it will just be for large and medium sized companies.
  • From April 2020 the Employment Allowance (up to £3,000) is being restricted to only apply to employers with and employer’s national insurance contribution bill of over £100,000.
  • The Annual Investment Allowance will be increased from £200,000 to £1,000,000 for two years from April 2019. (This means if there is going to be a big capital spend on the horizon it may be worth bringing this forward.)
  • From April 2020, the amount of the payable R&D tax credit that a qualifying loss-making company can receive in any one single tax year will be restricted to three times the
  • From 29 October 2018, any new non-residential buildings and structures will be eligible for 2% capital allowance. This applies to all construction projects for works are entered on or after 29 October 2018.
  • The special rate for capital allowances, which includes high emission cars will be reduced from 8% to 6% from April 2019.
  • From April 2019, Small business premises where business have a rateable value of below £51,000 will see their rates bill reduced by a third. The aim of this is to benefit 90% of independent shops, pubs and restaurants and rejuvenate high streets.
  • The VAT threshold has been frozen at £85,000 until April 2022.

If you have any queries, in relation to the above then feel free to contact us for free non-obligation consultation.