Current Issues | Tax | 22nd November 2017
The Chancellor’s budget featured some interesting initiatives for individuals and businesses and we are just putting the final touches to our detailed summary. It will be available to view from this webpage when it is ready, but in the meantime here are some of our highlights:
- Personal allowance for 2018/19 increased to £11,850. Basic rate limit increased to £34,500.
- Annual CGT exempt amount for 2018/19 increased to £11,300 for individuals, £5,650 for personal representatives and most trusts.
- Class 2 NIC will be abolished from April 2019 and other reforms will be made to NIC.
- Lifetime pension allowance is increased to £1.03m for 2018/19.
- Employees will not be taxed on electricity provided by an employer for an electric car, from April 2018.
- Foreign service relief for termination payments will end from April 2018.
- The government will consult on making the employment status tests clear for both employments rights and tax.
- The capital gains tax on gains on disposal of residential property after 5 April 2020 is to be payable within 30 days of completion – rather than the 31 January after the end of the tax year.
- The SDLT filing date is to be cut from 30 days to 14 days for transactions from 1 March 2019.
- R & D Credit is increased from 11% to 12% from January 2018.
- The EIS and Venture Capital Trusts limits to relief for knowledge-intensive companies are increased from April 2018.
- Companies’ chargeable gains for disposals from 1 January 2018 will reflect the indexation allowance only up to December 2017.
- Non-residents are to be subject to tax on gains on all UK ’immovable property’ with effect from April 2019. Currently they are only taxed on UK residential property.
- Changes to partnership taxation to apply from April 2018 that were supposed to clarify treatment of profits have been amended so as to be more compatible with commercial arrangements.
- Stamp duty land tax (SDLT) is cut for first-time buyers of residential property from 22 November 2017. If the consideration is not over £500,000, the SDLT is only 5% on the excess over £300,000.
- Non-resident companies’ UK property income, and gains on UK residential property are to be subject to corporation tax from April 2020.
- The government will consult on the introduction of a withholding tax on royalties to non-residents from April 2019.
- The government will consult on how to make the taxation of trusts simpler, fairer and more transparent.
- Anti-avoidance rules affecting the taxation of income and gains of offshore trusts are to apply from April 2018.
Specific advice should be obtained before taking action, or refraining from taking action, on any of the subjects covered above. If you would like advice or further information, please speak to your usual Shipleys contact.