2018 Autumn Budget
The Chancellor Philp Hammond delivered his second Autumn budget – initially planned for 31 October but brought forward a few days to avoid a Halloween clash. So, how many “tricks” and “treats” did it contain?
The “tricks” included a tightening up of tax relief on R&D claims, an increase in the share ownership period to claim Entrepreneur’s relief (10% tax on sale of businesses) from 12 months to two years, giving HMRC “preference” in corporate insolvencies, the extension of public sector IR35 rules (subcontractors treated as employees) to private sector medium and large businesses and reduced tax relief on certain items of capital expenditure.
But, there were also some welcome “treats”. These included an increase in personal tax allowances and the higher rate income tax threshold so that from April 2019, the higher rate of tax of 40% will not bite until income exceeds £50,000, spend on plant eligible for a full tax deduction (annual investment allowance) increased five-fold to £1,000,000 from 1 January 2019 and tax breaks for purchasing IP-rich firms. Oh, and the circa £350m boost for “Norn Iron” sounds good too.
Doubtless there will be more to digest once all of the fine print has been studied. Meanwhile, I attach our summary of the main points announced that will quickly bring you up to speed and hopefully be a light – but informative - read. Do ring me or your usual contact at team HCA if you have any query or require any more details.
Main Budget tax proposals
Our summary concentrates on the tax measures which include:
increases to the personal allowance and basic rate band
extending off-payroll working to medium/large organisations in the private sector
a temporary increase to the Annual Investment Allowance
freezing the VAT registration threshold for a further two years
changes to Entrepreneurs’ Relief and private residence relief
measures to tackle the plastic problem.
Previously announced measures include:
increases in car benefits
plans for Making Tax Digital for Business
extending the charge to gains on non-UK residents of non-residential UK property.
Some Budget proposals may be subject to amendment in the 2019 Spring Statement and subsequent Finance Act. You should contact us before taking any action as a result of the contents of this summary
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