Introduction
Fiscal Phil in his 2018 Budget provides a few nasty surprises. The Budget yesterday had all the potential to be a fairy tale, but no!
The annual forecasts are set to rise with more people forecast to be in jobs by 2022. As a result the tax receipt projections are up, making more spending possible!
Fiscal Phil For Business
Fiscal Phil put the focus on building business in the 2018 Budget. There’s a generous extra allowances for spending on Plant and Machinery. It’s up from £200,000 to a massive £1 million for one year from 1st January 2019 to 31st December 2019. Takecare when planning capital expenditure. This is very important especially when a business year end straggles those 2 dates. Unless your year end is December the allowance will be apportioned.
The same timing considerations should be given when building or improving a commercial property. The new Structures and Buildings Allowance (SBA) will be a great help.Those of you constructing or renovating a commercial building take note.
There’s also a welcome reduction of one third in the business rates for the small shops, bars, cafes and restaurants. Who could his toilet humour with a complete waiver of business rates on public loos. It’s now cheaper to do business on the High Street!
Fiscal Phil For Individuals
This Budget has hit business and property owners big time! The rules have changed for those wishing to dispose of their shares in their own company at a reduced rate of tax. The criteria for claiming Entrepreneurs Relief (ER) has also tightened. It’s also exceedingly gloomy on the house front. If you rent out a former home there’s no good news at all. The final period for the private residence relief has been reduced. In addition to the Letting Relief has all but disappeared.
But on the positive side all individual basic rate taxpayers will be £130 per annum better off as the increase in personal allowances is brought forward by one year.
Action
Are you interested in receiving further information or would you like to book a strategic consultation with Iain. Please contact Jacqueline on telephone 0191 603 0270 or email admin@iainwallis.com Let him show you where he can help you legally avoid tax.
