At Dua & Co we specialise in helping you to understand every aspect of your financial affairs – here is everything our clients should know about the new measures and upcoming changes introduced by the Chancellor in the Autumn Budget.
Stamp duty relief for first-time buyers
One of the most significant, and certainly the most discussed, measures in the budget involved stamp duty relief. From the 22nd of November 2017, any first-time buyer paying £300,000 or less for a residential property will pay no stamp duty land tax (SDLT) – saving them up to £1,500 on their first home purchase.
For property purchases valued at between £300,000 and £500,000, the stamp duty rate will be 5% on the amount of the purchase price in excess of £300,000. In the case of couples, both people must be first-time buyers.
The government estimates that as a result of these changes, 80% of people buying their first home will pay no stamp duty at all.
From April 2018, the tax-free personal allowance will rise by £350 to £11,850 – its eighth year of continued growth. The higher rate threshold will also increase, by £1,350 to £46,350.
Enterprise Investment Scheme
The annual limit for individuals investing under the EIS will be doubled to £2 million, provided that anything over £1 million is invested in knowledge-intensive companies.
BiK charges for electric cars
There will be no benefit in kind charge on electricity provided by employers for the purpose of employees charging electric vehicles.
R&D tax relief
To help Britain embrace what the chancellor referred to as a coming ‘technological revolution’, tax relief for research and development is to be increased from 11% to 12%.
There will be no reduction to the threshold at which businesses need to register for VAT. Instead the threshold will be maintained at its current level of £85,000 for a further two years commencing from April 2018.
VAT for online marketplaces
VAT legislation will be extended for online marketplaces. Online marketplaces will now be held jointly and severally liable for any future unpaid VAT of a UK business from sales made via that marketplace.
There will also be new rules for cases in which online marketplaces know or should know that a non-UK seller is supposed to be registered for VAT.
Royalty charges for digital companies
From April 2019, income tax will apply to digital companies’ royalties relating to UK sales when paid to low tax jurisdictions – even if they do not stand to be taxed in the UK under current rules.
Non-compliance in the private sector
In 2018, HMRC will hold a consultation on ways to tackle non-compliance in the private sector. An IR35 review will be held and the experience of public sector reforms will be heavily drawn on – including the upcoming results of external research previously commissioned by the government.
Changes to business rates
Several changes will be made to the business rates regime. These will include shorter intervals between revaluations and a switch from the Retail Price Index (RPI) to the Consumer Price Index (CPI). This was initially slated to take place in 2020, but has been brought forward to April 2018.
Capital gains tax for non-residents
The Chancellor also announced plans to extend capital gains tax (CGT) to all gains arising to non-residents on UK immovable property, such as land or buildings. This measure is set to be introduced in April 2019, and is promised by the government to bring in an additional £160 million annually.
As expert accountants based in Watford and London, the team at Dua & Co are always up to date on the latest policies, measures and issues that could affect UK businesses or your personal finances.
Get in touch with us today to learn more.