2018 Autumn Budget – what you need to know
The Chancellor, Philip Hammond, yesterday delivered what is expected to be the last UK Budget before Brexit. In a speech which signalled the end to austerity, Mr Hammond announced measures aimed at supporting businesses, infrastructure and the NHS.
The main announcements are summarised below, and our detailed analysis can be found here.
It is worth noting that the draft Scottish Budget will be published on 12 December 2018, which will include details of any changes to income tax rates and thresholds for 2018/19.
- The personal allowance for UK tax payers will be raised to £12,500 from April 2019, one year earlier than previously planned. At the same time, the higher rate threshold will rise to £50,000, also a year ahead of schedule.
- The pension lifetime allowance will increase to £1.055 million for 2019/20, with no change to the annual allowances.
- The VAT registration threshold has been frozen for another two years, meaning it will be £85,000 until 2022.
- The annual investment allowance (AIA) will increase to £1 million for all qualifying expenditure on plant and machinery made between 1 January 2019 and 31 December 2020.
- Business rates for retail properties with a rateable value below £51,000 will be cut by a third. Local newspapers will continue to receive a £1,500 discount and public lavatories will receive 100% business rate relief. These reductions will apply until 2021 when the rates will be re-evaluated.
- Fuel duties were frozen for the ninth year in a row, despite some speculation that the Chancellor would scrap the freeze. Duty on beer and spirits was also frozen.
If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please call us to discuss them.