Budget 2018: What you need to know
We are delighted to bring you our summary of the key announcements in the Budget 2018 statement, made on Monday, 29 October.
- 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.
- The national living wage will increase from £7.83 an hour to £8.21.
- The annual investment allowance (AIA) will increase to £1 million for all qualifying expenditure on plant and machinery between 1 January 2019 and 31 December 2020.
- A 2% structures and buildings allowance has been introduced for new commercial buildings.
- For entrepreneurs’ relief, the minimum period throughout which the qualifying conditions for relief must be met will be extended from 12 to 24 months.
- Business rates for retail properties with a rateable value below £51,000 will be cut by a third.
- Capital gains tax lettings relief will only apply where the owner of the property is in shared occupancy with the tenant. The final period exemption will also be generally reduced from 18 months to nine months.
- From 1 April 2020, the amount of payable research and development (R&D) tax credits that a qualifying loss-making company can receive in any tax year will be restricted to three times the company’s total PAYE and NICs liability for that year.
Download our budget summary to see the rest of the changes announced by Mr Hammond.
If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please contact us to discuss them.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.