Yesterday the Chancellor Philip Hammond announced his second Autumn Budget.

The speech was mainly that the “era of austerity is finally coming to an end but discipline will remain”.

The Budget has announced many welcomed news for many businesses. To follow some of the highlights of the main headlines and the full review on the attached PDF summary.

Personal tax: The Conservatives’ manifesto pledge to increase personal allowances to £12,500 and the higher rate threshold to £50,000 will be implemented from April 2019, which is one year earlier than proposed.

Entrepreneurs’ relief: Despite the pre-budget speculation, entrepreneurs’ relief will continue. However, the qualifying ownership period has been extended from 12 months to two years. Transitional rules will apply where the claimant’s business ceased before 30 October 2018.

Capital Gains Tax and Corporation Tax: taxing gains made by non-residents on UK immovable property: This measure extends the scope of the UK’s taxation of gains accruing to non-UK residents to include gains on disposals of interests in non-residential UK property. It also extends the charge on gains on disposals of interests in residential property to diversely held companies, those widely held funds not previously included, and to life assurance companies. The measure also taxes non-UK residents’ gains on interests in UK property rich entities (for example, selling shares in a company that derives 75% or more of its value from UK land).

Annual investment allowance: Businesses will now enjoy a higher AIA of £1,000,000 for the two years beginning January 2019, this should encourage capital investment.

Research and development: Refunds arising from research and development claims will be restricted to the PAYE paid by the company. This will restrict the benefit of R&D claims by companies that do not have employees.

Property tax: The main residence relief will be restricted. The final qualifying period of ownership will be reduced to nine months.

SDLT: Extension of SDLT exemption for joint first time buyers acquiring a property of up to £500,000. This measure is retrospective and first time buyers in this position may be able to claim a refund.

VAT: The VAT registration threshold of £85,000 per annum, will be maintained until 2022.

Please consider us available for any questions or clarifications you might need

See full review on:

30th October 2018