Tricks, treats and a few surprises from the Autumn Budget 2018
30th October 2018
Despite the timing, yesterday’s Budget announcement was not as scary as some feared. While there are a few nasties in there, the general gist was one of treats rather than tricks.
The Chancellor announced an increase in the personal tax allowance and higher rate tax band which will come into force a year earlier than planned.
There were commitments to increased public spending on emotive issues such as schools, high streets, hospitals, village halls, potholes and public toilets, plus a two-year cut in business rates for some independent shops, cafes and pubs.
Charities will also benefit, with a rise in the upper limit for trading that they can carry out without incurring a tax liability, as well as an increase to the individual donation limit under the gift aid small donations scheme to £30.
Minimum wages are to increase, stamp duty relief for first-time buyers is extended, fuel duty remain frozen, as do duties on beer, cider and spirits - all gestures intended to signal that the era of austerity is coming to an end.
But there are hidden thorns, too. For example, as long expected, IR35 will be extended into the private sector, although not until 2020. Entrepreneurs and lettings reliefs are being tightened up and some restrictions affecting R&D tax relief are due to be consulted on.
To understand how announcements made in the Budget on 29 October 2018 will affect your financial situation, download our budget summary.
Over the next few days, our tax team will be looking at the announcements in more detail. Keep an eye on our social media pages and blog for further insight into how the changes will affect you.