Allowances
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.
VAT
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.
Property Tax
The main residence relief will be restricted, the final qualifying period of ownership will be reduced to 9 months.
Entrepreneurs Relief
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.
SDLT
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.
IR35
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.
Lucy
