ATED Annual tax on enveloped dwellings: The annual tax on enveloped dwellings will rise by 2.4% from 1 April 2019 in line with CPI.
Capital Allowances Annual Investment Allowance: Temporary increase in annual limit: £1 milion. Change effective for expenditure between 1 January 2019 and 31 December 2020 New structure and building allowance Flat rate allowance 2%
Capital gains tax: The CGT annual exemption for 2019/20 will be £12,000 (£6,000 for most trustees).. There are no changes to the rates of CGT.
CGT: Proposal for CGT on property sales to be paid within 30 days of the date of sale. Measure delayed until 2020. Legislation in Financial Budget 2019 will include reporting requirement with same deadline
CGT non residents: New provisions extending CGT to non resident individuals, companies, etc on other real property from 6 April 2019. Companies will pay corporation tax on their gains. NRCGT provisions are extended to cover this.
Directors liability for taxes: New legislation will make directors and other persons involved in tax avoidance or evasion jointly and severally liable for company tax liabilities, where there is the risk that the company may deliberately enter insolvency. (applies from Royal assent).
EIS: Following consultation, legislation will be in FB 2019-20 with the changes taking effect from 6 April 2020. Approved funds will focus on investments in knowledge-intensive companies. Investors in approved funds will set their income tax relief against liabilities in the year before the fund closes.
Electric and Hybrid cars: Reduction in benefits in Kind from 2020. For wholly electric it will be 2%. Increasing scale for hybrids depending on electric range: Starting from 2% for less than 130 miles; increasing to 14% for under 30 miles.
Electric vehicle charging point installing will be a capital allowance (FYA) 100% deductible (extended to 2023).
Entrapreneurs relief: New Conditions – Genuine Entrepreneur: Ownership criteria to be amended to require: An entitlement to 5% of the distributable profits and ownership of 5% of the net assets of the company thoughout the necessary holding period. Minimum ownership period extended from one year to two years. One year will continue to apply for business cessations before 29 October 2019.
IHT on trusts: Where non domiciled settlor established a “pilot trust”it was then regarded as available to be added to at any time. The property would always be excluded property. Change applies to charges arising on or after Royal Assent.
Income tax: Personal Allowance £12,500 from 6 April 2019. Frozen in 2020/2021. Higher rate threshold 50,000
New Digital services tax: 2% tax on the revenues of digital businesses deriving value from UK users. It applies only to groups with global revenues of £500 milion pa. Activities affected are social media, search engines, online market places.
New plastics tax: Commencing from 2022. It will apply to the manufacture or import of plastic packaging materials containing less than 30% of recycled materials.
Non resident Companies – UK Property Income: From April 2020 non-UK resident
companies that carry on a UK property business or have other UK property income or gains will be charged to corporation tax. Guidance will be provided during 2019
Pension savings: Annual allowance remains £40,000. Lifetime Allowance rises to £1,055,000 for 2019/20
R&D relief for Small and Medium Enterprises From April 2020 restriction to be re-introduced when R&D are surrendered for cash payment. The maximum payable tax credit will be three times the total PAYE and NIC payment. for the relevant period.
SDLT: extended to shared ownership first time buyers (click here to know how to reclaim) costing up to £500,000. 5% charge on remainder. Backdated to 22 November 2017. Period allowed for making return and paying tax due will reduce from 30 days to 14 days with effect from March 2019. Relief allowed for those selling their home after purchase of the replacement. Extended period allowed for amending the SDLT return from 3 months to one year, when the old home is sold more than 12 months later.
Time limits – offshore matters: Default time limit for disclosures will be 12 years unless a longer time limit applies
VAT registration and deregistration thresholds: The annual taxable turnover threshold, which determines whether a person must be registered for
VAT, will remain at £85,000 for a further two years until 31 March 2022.