So, what did everybody think of the Budget today?
The big headline was probably the increase in the Personal Allowance to £12,500 and the Higher Rate threshold to £50,000 from April 2019; both changes had been promised already but were not expected until April 2020. The impact is that those with income over £50,000 will be £860 better off; those with income over £12,500 will be £130 better off; and those with income below the personal allowance will not be affected.
There were many tax changes announced in the Red Book. Some were expected, such as the removal of lettings relief and some less so, such as the increase in Annual Investment Allowance and the new capital allowance for non-residential structures (anyone remember Industrial Buildings Allowance?). For a summary of changes, please click here.
Personally, I had been hoping for changes to tax relief for training costs for the self-employed following the recent consultation, but the government have announced that no changes are to be made. The self-employed will therefore continue to receive no income tax relief at all for the costs of acquiring new skills and qualifications.
For more information about any of the budget announcements please contact me.
