Autumn Budget round up for individuals
Who received a ‘gift’ and who was left with a ‘lump of coal’ this festive season?…
It’s been over a month since the Chancellor Philip Hammond stood up and gave his Autumn Budget announcements but for individuals there were a number of changes which were announced that are worthy of a reminder. Some of these we were already aware of but there were also a few changes which came as a bit of a surprise.
Those who received a ‘gift’ include:
- Individual tax payers: It was announced that the increase in personal allowance to £12,500 and the basic rate threshold to £50,000 is being brought into effect 12 months earlier than expected. On average this will save a basic rate tax payer £66 per annum, a higher rate tax payer £387 per annum and an additional rate tax payer £236 per annum.
- The environment: The Chancellor announced the introduction of a new tax on plastic packaging that does not contain at least 30% recycle materials along with £60m for planting new trees in England.
- Road users: There will be an increase in funds to £30bn for dealing with the road and infrastructures of the country which includes £420m to repair potholes.
Like with any Budget there are always some that will lose out due to the changes being made. Those receiving a ‘lump of coal’ in their Christmas stocking include:
- Individuals who are selling their home: From April 2020 individuals selling their home will only be able to claim the last 9 months as deemed occupation when calculating any capital gains. This is currently 18 months.
- Individuals letting their home: From April 2020 individuals who have let their home for a period of time will no longer be able to claim lettings relief for this period unless they shared the premise with their tenant. This could be a loss of up to £11,200 in tax relief per property owner!
- Business owners: Amongst other qualifying criteria business owners will now have to hold shares in their trading company for 2 years or more to qualify for Entrepreneurs’ Relief. These same individuals will also have to ensure they have at least 5% of the company’s voting rights, entitlement to at least 5% of the distributable profits and net assets of the company.
For further information please speak with your usual Kreston Reeves adviser or contact us here or on +44 (0)330 124 1399.
Join over 8000 businesses and individuals who receive our complimentary e-bulletins by signing up here.
Subscribe to our newsletters
Our complimentary newsletters and event invitations are designed to provide you with regular updates, insight and guidance.
You can unsubscribe from our email communications at any time by emailing [email protected] or by clicking the 'unsubscribe' link found on all our email newsletters and event invitations.