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News & Knowledge

UK: The Autumn Budget 2018 – the headlines

30th October 2018

On 29 October 2018, the UK Chancellor delivered his last Budget before Brexit. Head of Tax, Katharine Arthur, from MSI's London accounting member firm haysmacintyre has summarised the key tax measures.

The key tax measures announced include:

  • The Spring Statement next March could be upgraded to a full Budget if required post Brexit;
  • Fuel duty to be frozen for ninth year in a row;
  • Income Tax: increase in Personal Allowance (to £12,500) and Higher Rate threshold (to £50,000) from April 2019;
  • Capital Allowances – the Annual Investment Allowance will be increased from £200,000 to £1m, for two years;
  • Non-residential buildings – a new permanent tax relief is to be introduced;
  • Intellectual Property rich businesses – a new targeted relief for their purchase;
  • Main residence relief – lettings relief from Capital Gains Tax restricted to residential property owners in shared occupation;
  • Main residence relief – the final period of ownership exempt from Capital Gains Tax reduced from 18 months to nine months;
  • Capital Gains Tax – Entrepreneurs’ Relief minimum qualifying period to be extended to two years, from 12 months;
  • Introduction of a UK digital services tax from April 2020 – aimed at large businesses (£500m in global revenue);
  • IR35 – off payroll working changes to be extended from public to private sector, from April 2020, for large and medium businesses;
  • Employment Allowance – additional relief to be targeted at small and medium businesses with an Employer NICs bill under £100,000 pa, from April 2020;
  • Apprenticeship Levy – a reduction in the rate small employers pay for training from 10% to 5%;
  • R&D Tax Credits – a PAYE restriction will be reintroduced for small and medium businesses;
  • Extension of Stamp Duty Land Tax relief for first time buyers to shared ownership purchasers (up to £500,000) since last year’s Budget, and;
  • A new tax on the manufacture and importation of plastic packaging with less than 30% of recycled material.

To read an in depth analysis of the UK Budget, please view Autumn Budget 2018 – An End to Austerity?

About haysmacintyre - London

haysmacintyre are a full service, award winning mid-tier firm of Chartered Accountants and tax advisors in central London, providing advice to entrepreneurs, fast-growing and owner-managed businesses, charities and not for profit organisations across the UK and internationally.

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