Personal Allowance – the personal tax-free allowance for UK residents will increase to £12,500 from 6th April 2019.
Higher Rate Threshold – the higher rate tax threshold for UK residents will increase to £37,500 (£50,000 including personal allowance).
Income Tax rates and thresholds on non-savings, non-dividend income for Scottish taxpayers are set by the Scottish Parliament.
The VAT threshold will be maintained at £85,000 until 2022.
Capital Gains Tax
From 6th April 2019 the CGT annual exemption for individuals will be £12,000 and for trustees of a settlement will be £6,000.
The main residence relief will be restricted, the final qualifying period of ownership will be reduced to 9 months.
Entrepreneur’s Relief will continue; however, the qualifying ownership period has been extended from 12 months to 2 years.
Annual Investment Allowance
Businesses will now enjoy a higher AIA of £1,000,000 for the 2 years beginning January 2019. This is to encourage capital investment.
Extension of SDLT exemption for joint first-time buyers acquiring a property of up £500,000. This measure is retrospective so first-time buyers in this position may be able to claim a refund.
Research & Development
Refunds arising from R&D claims may be restricted to the 3x the PAYE liability paid by the company. This would restrict the benefit of R&D claims by companies that do not have employees.
The IR35 ‘off payroll’ rules will be extended to the private sector from April 2020. They will apply to ‘large or medium-sized’ businesses.
If you would like any further clarification, please do not hesitate to contact us.