- First-time buyers now will not pay any stamp duty on properties up to £300,000, and for London, the first £300,000 on properties up to £500,000 will be exempt. This can be a significant saving for first time buyers, benefiting almost all first-time buyers.
- Councils have been given power to charge 100% council tax premiums on empty properties. Keep an eye on updates from your local council’s policy. As an example, Sheffield Council currently charges a 50% premium on properties empty and unfurnished for over 2 years.
- The fuel duty rise for diesel and petrol cars due for April 2018 has been scrapped.
- For company cars, the diesel supplement on private fuel costs will rise by 1%, from 3 to 4%. If you currently pay the fuel benefit on your P11D, it may be worthwhile to contact us for advice on whether this will remain to be beneficial to you.
- If you buy a new diesel car from April 2018, check whether it meets the latest emissions standards, as if it does not, this will result in an increase in the one-off first year road tax charge. Most cars do not currently meet the standards. This applies to cars only, vans are excluded.
- From April 2018, electricity provided for electric cars will be exempt as a benefit in kind.
Wages, Pensions and Income taxes
- State pension will rise by 3% from April 2018, equating to an extra £3.65 per week.
- National living wages will rise from £7.50 to £7.83 per hour from April 2018, up by 4.4%.
- Your personal allowance for the 2018/19 tax year will rise to £11,850, and the higher-rate tax band will rise to £46,350.
- Starting rates for savings income will remain at 0% for up to £5,000 for the 2018/19 tax year.
- For gift aid donations over £100, charities can offer an additional relief up to 5% on the donation over £100, on top of the current 25%. The total gift aid benefit limit remains at £2,500.
- The capital gains tax annual exempt amount will rise from £11,300 to £11,700 for individuals for the 2018/19 tax year.
- For the 2018/19 tax year, the 0% dividend tax band will be reduced from £5,000 to £2,000. If you would like advice on how this may affect your remuneration package, we would be happy to help.
- VAT – the registration threshold will remain at £85,000, and deregistration at £83,000 for the next two years.
- Income tax, unincorporated property businesses – a fixed mileage rate can now be used as a deductible cost, rather than capital allowances and deductions for actual fuel costs incurred.
- R&D relief – the Research and development expenditure credit will increase from 11 to 12% from 1 January 2018.
- Corporation tax, capital gains – Indexation allowance on corporate capital gains will be frozen at the RPI for December 2017, for disposals on or after 1 January 2018.
Sutton McGrath Hartley is a multi-disciplinary firm of chartered accountants, financial advisers and lawyers offering financial expertise for all business, personal and family interests. Please get in touch with one of our team on 01142664432 or email us at [email protected]