Budget  

Budget tax round-up: everything you need to know

"Everyone should have access to high quality and reliable financial advice, as and when they need it. This is especially true on tax issues which can be notoriously complex to navigate, and where people’s financial situation can benefit greatly from specialist advice. We’re looking forward to positively contributing to the consultation and seeing the outcomes in due course.”

For more details of the biggest tax changes see the table below:

TaxChanges in 2018 BudgetChanges in 2017 BudgetNew: Changes in 2020 Budget - March 11
Income tax and personal allowancesPersonal Allowance goes up to £12,500 from April 2019, one year sooner than was stated last year. The Higher Rate Threshold will be increased to £50,000 from April 2019.In April 2018 as previously mentioned, personal allowance will rise to £11,850 and the higher rate threshold to £46,350. NEW: Government will now allow claims for marriage allowance in cases where a partner has died before the claim was made, and can be backdated for up to four years.Gov't pledges to meet commitment to raising income tax personal allowance to £12,500 and the higher threshold to £50,000 by end of this parliament. Once it reaches £12,500, it will rise in line with CPI.
Dividend taxNo changes mentioned; dividend allowance remains at £2,000No changes mentioned; the drop to £2,000 from £5,000 came into force. No changes mentioned
Pension allowanceNo changes to the PAA mentioned. The lifetime allowance for pension savings will rise in line with CPI for 2019-20, rising to £1,055,000No changes mentioned; as mentioned in the spring Budget the lifetime allowance will rise in line with CPI, to £1.03m for 2018-2019.

Increase to earnings threshold of £90,000 for the tapered pensions annual allowance, meaning the threshold will now kick in at £200,000.

However, individuals who continue to be affected by the TAA will see their minimum TAA reduced from £10,000 to £4,000.

LTA rising in line with CPI as previous Budgets stated.

Capital gains taxWith regard to Entrepreneur's Relief, in addition to the current requirements on share capital and voting rights, from 29 October 2018 shareholders must also be entitled to at least 5% of the distributable profits and net assets of a company to claim the relief. This is to address an identified abuse of the current rules.No changes; as previously announced, the 30-day window between a capital gain arising on a residential property and payment will be deferred until April 2020.Only a change to entrepreneurs' relief. Company founders can pay a discounted CGT rate of 10% when they sell their businesses, compared with the 20% rate typically applied, but their lifetime rate is being slashed by 90%.
Bank levyThe bank levy will reduce over the next six years to £1.1bn by 2023-24 Government has committed £36m more of banking fines over the next three years to support armed forces charities and other good causes.New Economic Crime Levy introduced to combat white-collar fraud.
Inheritance taxNo changes mentionedNo changes mentionedNo changes mentioned
Corporation tax

restrict use of Tax carried forward capital losses from 2020-21 

Government will increase R&D expenditure credit from 11 per cent to 12 per cent.

Planned cut in corporation tax rate will not happen this year, but will remain at 19%

Tax on savings interestNo changes mentionedNo change

Junior Isa and Child Trust Fund subscriptions will double to £9,000.

National Insurance ContributionDelay NICs Bill by one year and maintain Class 2 NICs.Government will delay implementing a series of NICs policies by one year; it confirmed the government will no longer proceed with an increase to the main rate of Class 4 NICs from 9 per cent to 10 per cent.

Government is increasing the threshold for when NI becomes payable to £9,500.

Changes to NIC allowances will save employees £104 a year, and self-employed individuals £78 a year. 

Stamp Duty Land TaxStamp duty is to be abolished for all first-time buyers in shared ownership properties up to £500,000.  Gov't will publish a consultation in January 2019 on a SDLT surcharge of 1% for non-residents buying residential property in England and Northern Ireland.

New for the March 11 Budget: An additional 2 per cent SDLT announced for foreign buyers from April 2021.

Environmental taxesCurrently fuel duty will remain frozen this year (2020) but Mr Sunak said he cannot commit to this in future given the risks to the environment. 
New: Abolition of business rates for one year as a result of coronavirus. It should help small retail businesses and the leisure industry.
Entrepreneurs' reliefThe government will reduce the lifetime limit on entrepreneurs' relief from £10m to £1m; Mr Sunak said he would not remove it completely.

simoney.kyriakou@ft.com