On Monday, 29th October, Chancellor Philip Hammond announced the 2018 Autumn Budget. Following an almost traditional theme the balance between continued cuts and excessive borrowing was apparent in the measures announced. Here we give you the key highlights with an in-depth summary available to download using the link provided below.
- The personal allowance will be raised to £12,500 from 2019/20 and the higher rate threshold will rise to £50,000. Both the personal allowance and higher rate threshold will then remain unchanged until 2021/22, when they will increase in line with the consumer price index (CPI) thereafter.
- From 2019/20 capital gains tax (CGT) annual exempt amount will increase to £12,000 for individuals and personal representatives and £6,000 for trustees of settlements.
- The pension lifetime allowance will increase to £1.055 million for 2019/20, with no change to the annual allowances.
- From 6 April 2020, the final period CGT exemption for private residence relief will be reduced from 18 months to 9 months.
- Also from 6 April 2020 lettings relief will only apply where the owner is in ‘shared-occupancy’ with the tenant.
The minimum period throughout which the qualifying conditions for entrepreneurs’ relief must be met will be extended from 12 months to 24 months from 6 April 2019.
- The annual investment allowance will increase to £1 million for all qualifying expenditure on plant and machinery made between 1 January 2019 and 31 December 2020.
If you have trouble opening the document, or would like a PDF copy emailed to you, please let us know.
If you have any questions on how these changes may affect you, please do not hesitate to get in touch.
RMT ref: 215/10.18/LH