Private Client Commentary
Personal tax highlights
Capital Gains Tax (“CGT”): With an unexpected reduction in the rate of CGT in three weeks’ time – can you postpone the sale of your asset? Changes to Entrepreneurs’ Relief… As ever, the devil is in the detail… And in the small print there is a development for non-doms.
Allowances: The highly anticipated increase to the basic rate threshold coupled with a further increase to the personal allowance will take people earning under £45,000 out of the higher rate of taxation.
ISAs: As promised, the Chancellor did not proceed with pension reforms but aims to encourage those under 40 to start saving with the introduction of a new flexible Lifetime ISA.
Loans to shareholders: Tax on loans to shareholders from their companies will increase from 25% to 32.5%.
Stamp Duty Land Tax (“SDLT”) on commercial property: Increase in SDLT for purchases over £1.05m.
Corporate tax highlights
The main highlight was the unexpected cut to corporation tax, which is further reduced to 17% with effect from 1 April 2020 – which means the UK continues to be attractive to multinational businesses.
Other points of note include:
the opportunity to offset carried forward losses, although there are restrictions for larger companies;
the package of measures aimed at tackling VAT evasion by overseas sellers in online marketplaces; and
changes to the rate of Stamp Duty Land Tax (“SDLT”) on non-residential property.
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