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30th October 2018

Autumn Budget 2018

Filed Under: Tax, Accounting, Business News


Income Tax

  • Personal allowance to go up to £12,500 from April 2019. It will remain the same for 2020/21 and then increase by the rate of inflation thereafter.
  • The basic rate band will be extended to £37,500 from April 2019 and again will remain the same for 2020/21 and then increase by the rate of inflation.
  • Starting rate for savings 0% band will remain at £5,000.

Capital Allowances

  • The first-year allowanced for electric charge-points will be extended by 4 years until 31 March 2023 for corporation tax and 5 April 2023 for income tax purposes.

Capital Gains Tax

  • The qualifying period for Entrepreneurs’ Relief will be extended from one year to two years. This will affect disposals on or after 6 April 2019 except where a business ceased before 29 October 2018.
  • To qualify for Entrepreneurs’ Relief on the disposal of shares in a personal company the tests will now require the claimant to have a 5% interest in both the distributable profits and the net assets of the company.
  • UK tax residents disposing of a UK residential property will be required to make a payment on account of the capital gains tax liability due on disposals on or after 6 April 2020.
  • From April 2020 the final period exemption for private residence relief will be reduced from 18 months to 9 months.
  • From April 2020 capital gains tax letting relief will be reformed so that it only applies in circumstances where the owner of the property is in ‘shared-occupancy’ with a tenant.

Miscellaneous

  • The Gift Aid Small Donations Scheme individual donation limit increases to £30.
  • The off-payroll rules that applied to workers in the public sector form April 2016 will apply to workers in the private sector from April 2020.
  • The ISA allowance has remained unchanged at £20,000.
  • The lifetime allowance for pension savings will increased to £1,055,000.
  • The VAT registration threshold for registration and deregistration will not change for a further two years and will remain at £85,000 and £83,000 respectively.

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