Budget 2018: What does it mean for family businesses?
30th October 2018
Yesterday Chancellor Philip Hammond MP stood up to deliver his third budget. But what did the Chancellor say that family business owners need to be aware of? And how will the announcements affect your businesses? We run through some of the key points from yesterday’s statement.
- The Annual Investment Allowance will increase from £200,000 to £1 million for two years
- A new permanent Structures and Buildings Allowance will provide relief for businesses investing in new buildings – businesses will be able to claim capital allowances on the construction costs, including land alteration and improvement cost, of all new, non-residential structures and buildings
- An extension to the Start-Up Loans Company
Employment and Skills
- A new £11million Small Business Leadership Programme delivering 2,000 places in its first year
- A decrease in the Apprenticeship Levy co-investment level, from 10% to 5%
- A £5 million package of support to boost the resources of the Institute for Apprenticeships
- A one-third Business Rates discount for retail properties with rateable values below £51,000 for two years
- The government is to restrict companies’ use of carried-forward capital losses to 50% of capital gains from 1 April 2020. The measure will include an allowance that allows companies unrestricted use of up to £5m capital or income losses each year
- From April 2020 the government will introduce a new 2% tax on the revenues of certain digital businesses
- The government will consult on the VAT registration threshold, but the current threshold will be maintained to 31 March 2020
- Capital Gains Tax annual exemption will be increased to £12,000 for individuals and personal representatives and £6,000 for trustees for 2019/20
- For disposals made on or after 6 April 2019, individuals will need to meet the qualifying conditions for entrepreneurs’ relief for a minimum of 2 years, up from 12 months currently (there will be special provisions for cases where the business ceased before
- The personal allowance will rise to £12,500 and the higher rate threshold will increase to £50,000 for 2019/20
- HM Treasury also confirmed that the planned consultation on the taxation of trusts will go ahead
- The government will introduce legislation confirming that additions of assets by UK-domiciled (or deemed domiciled) individuals to trusts made when they were non-domiciled are not excluded property
Find out more about all the Budget announcements here.