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.
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