06.12.2017 , BY Anil Sookharry
06.12.2017 , BY Anil Sookharry
The tax free personal allowance will increase to £11,850 and the higher rate threshold will increase to £46,350 from April 2018. The personal allowance for 2017/18 is £11,500 and the higher rate threshold is £45,000.
Benefits in kind - electric cars: From April 2018, there will be no benefit in kind charge on the electricity that employers provide to charge employees’ electric vehicles.
The band of savings’ income that is subject to the 0% starting rate will be kept at its current level of £5,000 for 2018/19 for non taxpayers. The allowance is £1,000 of savings’ income for basic rate taxpayers and £500 for higher rate taxpayers per annum. It is to be noted that the personal savings allowance is currently available to basic rate and higher rate taxpayers, but not taxpayers in the 45% tax band.
It is also to be noted that the dividend allowance of £5,000 which is currently available will be reduced to £2,000 from 6th April 2018.
Individual Savings Account (ISA) annual subscription limits: The ISA annual subscription limit for 2018/19 will remain at £20,000. The annual subscription limit for Junior ISAs and Child Trust Funds for 2018/19 will be increased to £4,260.
The lifetime allowance for pension savings will increase in line with CPI to £1,030,000 for 2018/19.
The Chancellor has introduced a permanent exemption from Stamp Duty Land Tax (SDLT) for property purchases completed on and after 22nd November 2017.
The exemption will apply a 0% rate of SDLT on the first £300,000 of the purchase price of a home, where the total price paid for the property does not exceed £500,000. If the purchase price is more than £500,000, the exemption will not apply and the normal SDLT rates will be charged.
The buyers of the property must include one or more individuals who have never owned a residential property, or had an interest in a home, in the UK or anywhere else in the world. The property must be intended to be occupied as the buyer’s main home.
Parents who help to fund the purchase of a property by their children must be careful not be named as one of the buyers, as that will block the SDLT exemption if the parent has previously owned a home.
This exemption will not apply to properties in Scotland, which are subject to Land and Buildings Transaction Tax (LBTT). It will only apply to purchases of properties in Wales until 31st March 2018, as the Welsh Land Transaction Tax (LTT) applies from 1st April 2018.
Currently, no UK tax is payable by an overseas property owner when they sell non-residential (i.e. a commercial property) which is located in the UK. To block such tax avoidance, gains made on any immovable property will be subject to UK tax from April 2019.
The government has changed the law to allow individual landlords to use the fixed rate mileage deduction of 45 pence per mile from 6th April 2017 when they visit the rented property.
It has also been noted that the government had introduced off-payroll working rules (IR35) to the public sector in 2017. The government is now consulting on whether to introduce IR35 to the private sector. The result of the consultation will be published in 2018.
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