Budget 2018: At a glance

October 31, 2018

In a low-key budget speech, is Philip Hammond preparing our local economy for a new chapter?  

Most individuals can expect to pay less Income Tax although those who are self employed and operate through their own company can expect an increase in Income Tax and National Insurance from April 2020. 

There’s more Stamp Duty relief for first time buyers purchasing a shared equity home up to £500,000 but those who have spent time away from their home during their ownership period may realise an unexpected Capital Gains Tax liability when sold by virtue of the Chancellor changing the rules on main residence relief from April 2020.

To encourage longer-term investment in our local businesses, from April 2019, individuals will need to meet the qualifying conditions for Entrepreneurs’ Relief for two years, twice as long as previously, to claim the 10% tax rate. 

From January 2019, our local businesses will benefit from immediate tax relief on plant and machinery purchases of up to £1m for a couple of years and a reduction in their apprenticeship levy to 5%.  High Streets will be rejuvenated by slashing business rates for independent shops, pubs and restaurants; especially those providing public conveniences. A new 2% Digital Services Tax may be introduced in April 2020 for established ‘tech’ giants.

Is the era of austerity finally coming to an end?

This budget relies on a Brexit deal being reached.  If not, expect the Spring Statement to be upgraded to a full budget.

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