Budget Special Newsletter Cylchlythyr y Gyllideb
There are no significant changes arising from the Budget which will cause any great anxiety to the vast majority of clients and readers.
- The Personal Tax Allowance is increasing from £11,850 to £12,500 from 6 April 2019 which will mean an increase of £130 to take home pay for all basic rate tax payers. The higher rate of tax increases from £46,350 to £50,000 which is an increase in take home pay of £860 for 40% tax payers.
- The annual investment allowance for small and medium sized businesses increases from £200,000 to £1,000,000 for 2 years.
- With effect from 6 April 2020 contractors working on contracts for private sector companies are more likely to be taxed under PAYE rules.
- There will be higher taxes on tobacco, white cider, wine and air travel.
- Business rates bills for firms with a rateable value of £51,000 or less to be cut by a third over 2 years.
- Where individuals own a home for a few years but then change its use to a rental property, under current legislation they are unlikely to pay any Capital Gains Tax. However there is a reduction in reliefs and a greater likelihood of paying Capital Gains Tax after 6 April 2020. Please contact me if you wish to discuss the potential tax effects of this change.
- Policies untouched by the Budget include no change to the basic Inheritance Tax threshold, no reduction in pension allowances, no reduction in the VAT threshold, no tax on takeaway coffee cups.
- There is a 2% digital tax for large multi national companies.
If there are any points you wish to discuss in further detail, please contact