Edwards Greene Budget Summary 2018

© Copyright 29 October 2018. All rights reserved. This summary has been prepared very rapidly and is for general information only. The proposals are in any event subject to amendment before the Finance Act. You are recommended to seek competent professional advice before taking any action on the basis of the contents of this publication. Contents Budget highlights 1 Introduction 2 Personal taxation 3 Pensions, savings and investments 5 Capital taxes 6 Business taxes 8 Property taxes 11 Value added tax 12 Avoidance, evasion and unfair outcomes 13 National insurance contributions 16 Budget highlights ■ The personal allowance will be raised to £12,500 from April 2019, one year earlier than previously planned. At the same time, the higher rate threshold will rise to £50,000, also a year ahead of schedule. Both the personal allowance and higher rate threshold will then remain unchanged in 2020/21 before being increased in line with the consumer price index (CPI) thereafter. ■ The pension lifetime allowance will increase to £1.055 million for 2019/20, with no change to the annual allowances. ■ The annual investment allowance will increase to £1 million for all qualifying expenditure on plant and machinery made between 1 January 2019 and 31 December 2020. ■ For two years from April 2019, business rates for retail properties with a rateable value below £51,000 will be cut by a third. ■ The minimum period throughout which the qualifying conditions for entrepreneurs’ relief must be met will be extended from 12 months to 24 months from 6 April 2019. ■ The proposed shared occupancy test for rent-a-room relief has been abandoned and the existing tests will continue to apply. ■ From April 2020, the final period capital gains tax (CGT) exemption for owner-occupied residential property will be reduced from 18 months to 9 months. 1 Budget 29 October 2018