Philip Hammond has delivered his speech. Now the exciting/popular/energetic/charismatic people among us will bury our heads in the actual text and find out what the budget actually means for you and me. As like all budgets, the start is about how well we are doing, how great the economy is and the increases in public spending that are announced. Then the finer details follow which have a more immediate effect on you and me. Here are the takeaway headlines that may affect you from his speech.
The OBR growth forecast is 1.6% 2019, 1.4% 2020, 1.4% 2021, 1.5% 2022, 1.6% 2023
Annual Investment allowance
This has been raised for 2 years from the current £200,000 to £1 million.
Long life assets
Reduction from 8% to 6% on capital allowances
Reduced from 10% to 5% for small business
Limited to companies small and medium companies
VAT Registration Threshold
This has been held at £85,000 for a further 2 years.
The qualifying period has been extended from 12 months to 2 years.
R&D Tax credits
PAYE Restriction to be re-introduced
Private residential relief
Principal Private Residence relief changes to include a reduction of the last 18 months’ ownership exemption to 9 months’ and new conditions for letting relief.
Stamp duty – Shared ownership
Stamp duty is abolished on houses up to £500,000 if part of shared ownership scheme
1/3 deduction of business rates if ratable value is less than £51,000
Same rules that were brought in to the public sector will be introduced to Private sector for large and medium companies in April 2020
National Living Wage
National living wage to Increase from £7.83 to £8.21 in April 19
Personal allowances and 40% banding
Increase in Personal Allowance to £12,500 and 40% threshold to £50,000 to be implemented one year earlier from 6 April 2019
But the good news – Fuel, beer, cider and spirit duty have been frozen!