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2018 Budget Update

POSTED BY: Jenna Hann

05 November 18

The main highlights of the Budget announcements are as follows:

Personal Tax

• Increase in the personal allowance to £12,500 from 2019/20

• From 6 April 2020 the final period of exemption for principal private residence relief (PPR) will be reduced from 18 months to 9 months. Also letting relief will be amended such that relief will only be available where there is shared occupancy (i.e. the owner and tenant both live in the residence).

• The proposed changes to rent a room relief have been dropped so no changes there.

Capital Gains Tax

• The minimum qualifying period that applies for Entrepreneurs’ relief will be extended from one year to two years.

• From 6 April 2019 the non-resident capital gains tax (NRCGT) regime is to be extended to non-residential property meaning all disposals of interests in UK land by non-residents will be within the scope of the regime. Any capital gains tax due must be paid within 30 days of completion regardless of whether a tax return has been issued or not.

• From 6 April 2020 ― the same regime for NTCGT will apply to UK residents who make a gain on a disposal of UK residential property (delayed by one year)

Capital Allowances

• AIA will be increased to £1m from 1 January 2019 for two years (up from the current threshold of £200k).

• A new structures and building allowance (SBA) introduced on expenditure on or after 29 October 2018.

• WDA on the special rate pool will be reduced from 8% to 6%.

Employment Tax

• The plan to charge Class 1A NIC on the excess of termination payments over £30,000 will be delayed by one year and will now not be in force until April 2020.

Corporation Tax

• From 1 April 2020, brought forward capital losses will be restricted to 50% of annual capital gains.

• Reform of intangible fixed assets, partial reinstatement of relief for acquired goodwill in the acquisitions of business with eligible intellectual property from April 2019.

• Definition of a ‘permanent establishment’ has been extended.


• Current VAT thresholds will remain the same until April 2022.

Stamp Duty Land Tax

Time allowed to amend a tax return relating to higher rates for additional dwellings from three months to twelve months for those who sell their old homes more than 12 months after they buy a new home.


Payment holiday extension?

Help with mortgages to continue for homeowners affected by Coronavirus according to the Government today…..

Credit where credit is due

Do you need to inform Universal Credit about the SEISS grant you have been awarded?

Open all hours?

The Government have given clear guidance on which businesses must remain closed