Inner banner

“ They explain my accounts in a way that’s
easy to understand

About us

Key Points of the Budget 2018

Chancellor Philip Hammond presented this year’s Autumn Budget earlier than usual, due in part to the crucial final stages of the government’s Brexit talks with the EU. Under pressure to support the ‘end of austerity’ message, bolstered by revised growth forecasts from the Office of Budget Responsibility, and safe in the knowledge that it could all go out of the window in the event of a no-deal Brexit, the Chancellor gave the most eventful Budget speech of recent years.

See our full budget report here

Small retail businesses in England will see business rates reduced by a third. The reforms to IR35 in the public sector will be extended to include the private sector and entrepreneurs and lettings reliefs are being tightened up.

Measures for businesses included a cut in business rates for small retail properties in England, together with an increase in the Annual Investment Allowance from £200,000 to £1 million for two years. The capital gains tax (CGT), annual exempt amount for individuals rises from £11,700 to £12,000 from 6th April 2019.

Individuals will benefit from an increase in the income tax personal allowance a year earlier than planned, in April 2019. The higher rate threshold will also increase at this time. In respect of inheritance tax (IHT), the residence nil-rate band (RNRB) increases from £125,000 to £150,000 from 6th April 2019 and to £175,000 from 6th April 2020. For estates with a net value of more than £2m, the withdrawal rate is tapered by £1 for every £2 over the £2m threshold. Any unused RNRB can be transferred to a surviving spouse or civil partner.

A 4.9% increase will see the national living wage set at £8.21 an hour for over 25’s and some employers will pay half of what they paid towards the apprenticeship levy – down from 10% to 5%. The main rate of corporation tax remains at 19% for 2019/20. The intention to cut the rate of corporation tax to 17% in 2020/21 was reiterated.

The Budget Report supplies useful tips and practical advice in regard to tax and financial planning, alongside an informative 2019/20 Tax Calendar.