30.10.2018: The Budget
Chancellor Philip Hammond's Budget delivered a number of expensive spending pledges and brought forward headline-grabbing Income Tax cuts, whilst leaving him room for manoeuvre in the event of a Brexit ''no deal'.
The Budget delivers the government's earlier commitment to increase the Personal Allowance to £12,500 and higher rate threshold to £50,000 by bringing it forward one year to April 2019 (excluding non-savings, non-dividend income in Scotland: the Scottish Budget is due to be published on 12 December 2018).
The Capital Gains Tax annual exemption will increase to £12,000.
There will be consultation to better target Private Residence Relief at owner-occupiers from April 2020.
The government will publish a consultation in January 2019 on a Stamp Duty Land Tax surcharge of 1% for non-residents buying residential property in England and Northern Ireland.
An enjoyable retirement should be a reward for the "hard work of the British people£ and - contrary to the variety of doom-laden threats to tax-relievable retirement planning - there were no changes to the rates of tax relief, to the Annual Allowance, or to tax-free cash. The only change to pensions was a marginally higher than expected increase to the Lifetime Allowance to £1,055,000. (Legislation for an increase in line with September's CPI of 2.4% would have meant an increase to £1,054,800.)
The messages for retirement planning remain unchanged - maximise tax-relievable contributions whilst they are available.
There were no changes to ISA limits. Junior ISA and Child Trust Fund subscriptions will increase by CPI from 6 April 2019 to £4,368.
From the perspective of the tax-advantaged products (EIS/VCT/BR), there were no significant changes announced in the Budget, which was widely expected following on the back of several changes in the Autumn Budget 2017. Hence, the generous tax reliefs remain in place to support investment in small growth businesses.
However, it was announced that a new "knowledge intensive" EIS fund will be available from April 2020.
From 6 April 2019, the minimum period throughout which the qualifying conditions for relief must be met will be extended from 12 months to 24 months. Immediately from the Budget day of 29 October 2018, in addition to the existing requirements to hold at least 5% of the share capital and voting rights in a trading company, shareholders must also be entitled to at least 5% of the distributable profits and net assets of a company to claim the relief.
By 2018, every employer in the UK will have to provide a
suitable workplace pension scheme and automatically
enrol many of their workers.
Workplace pensions have gone from being for a minority of workers to being for the majority
as part of all employers' legal duties.
NEST has been set up to help employers meet their new duties. It's based on extensive
research into what employers and their workers need from a workplace pension scheme and a
thorough understanding of how the new duties work.
You don't just 'get' auto enrolment. It's been purpose-built to make it easy for employers to
comply with their new duties. With master trust assurance as well as independent recognition
for quality and innovation, you can be assured that NEST represents great value in the auto