We've outlined some key details and summarised Monday's Budget, to help you separate the wheat from the chaff.
- The personal allowance will be raised by £650 to £12,500 for 2019/20, meeting the 2020/21 target set out in the 2017 Conservative manifesto
- There will be a £3,650 rise in the higher rate threshold for 2019/20, to £50,000, again matching the manifesto target. This will as usual not apply fully to Scotland, which sets its own tax rates and thresholds for non-savings and non-dividend income. For the first time Wales will also have the power to set income tax rates (but not bands) for non-savings and non-dividend income in the coming tax year, although no changes are anticipated
- The increase in the higher rate threshold means a corresponding increase in the threshold of full rate National Insurance contributions (NICs) for employees and the self-employed
- A £300 increase in the capital gains tax annual exemption to £12,000 will occur in 2019/20
- There will be an inflation-linked increase in the lifetime allowance to £1.055m – and no changes to the annual allowance
- The rules on entrepreneurs’ relief are being tightened up, including from 2019/20 a doubling of the minimum period during which the qualifying rules must be met from 12 months to 24 months
- The annual investment allowance (AIA) will increase to £1 million for all qualifying expenditure made in the two years from 1 January 2019.
The 2018 Budget Round Up was produced by Technical Connection if you require personal advice on how the budget affects you we strongly recommend you seek Independent Financial or Tax Advice.
To read our 2018 Budget Round Up in full open the attached document
The views and opinions contained herein are third party and may not necessarily represent views expressed or reflected by Willis Owen.
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