The Autumn Budget: How will it affect me?

1 year, 8 months ago by Oliver Atkinson

The Autumn Budget has landed. Let's take a look in the chancellor’s briefcase for what is to arrive over the coming months for businesses and individuals..

Autumn Budget 2018

The Autumn Budget has landed, the last to be announced before Britain leaves the European Union in 2019. Let us take a look in the chancellor’s briefcase for what is to arrive over the coming months for businesses and individuals.

Tax Rates & Allowances

An increase in the personal tax allowance has been brought forward to April 2019, increasing from £11,850 to £12,500. The Higher Rate Threshold is to increase from £46,000 to £50,000.

Annual Investment Allowance

The Annual Investment Allowance for businesses (AIA) will be increased from £200,000 to £1,000,000 from 1st January 2019 until 31st December 2020.

National Living Wage

The National Living wage for over-25s will rise 4.9% in April 2019, from £7.83 per hour, to £8.21 per hour.

Business Rates Relief

As part of a package aimed at reinvigorating high street businesses, it has been announced that there will be around £900m of business rates relief available for business premises with a rateable value of £51,000 or less.

Lettings Relief

There are some big changes coming to Lettings Relief, which will only be available to owners who are in shared occupancy with the tenant starting April 2020. This reform will also reduce the final period exemption from 18 months to 9 months.

Stamp Duty

First time buyers of shared ownership properties up to a value of £500,000 will no longer have to pay Stamp Duty, applied retrospectively to the date of the last Budget.

Entrepreneurs’ Relief

Starting 29th October 2018, the minimum qualifying period for Entrepreneurs’ Relief to increase to 2 years. To qualify, the owner of the business will now also need to own shares that entitle them to 5% of the net assets of the company and distributable profits.

VAT

There are no planned changes to the VAT threshold, which ist o remain the same for at least 2 years.