Now that Boris Johnson and his Conservative party have won the General Election will we finally Get Brexit Done? More importantly, can the UK Government now get on with running the country and sort out urgent issues such as the NHS and social care? We will have to wait and see. For now, let’s see what their re-election could mean for you.
What are the main tax changes?
The Conservative Party manifesto stated that Corporation Tax would remain at 19% instead of reducing to 17% on 1 April 2020 which will provide an extra £6 billion, much-needed funding for the NHS. Businesses would however benefit from a planned increase in the Structures and Buildings Allowance from 2% to 3%. That allowance provides tax relief for the construction or renovation of commercial buildings.
The manifesto also announced that the National Insurance threshold would be raised to £9,500 in 2020/21, from the current £8,632. The party’s ambition was to raise the threshold to £12,500 in line with the Income Tax Personal Allowance.
When is the next Budget?
The Chancellor of the Exchequer, Sajid Javid, has confirmed that the next Budget will be held on Wednesday 11 March 2020. Sajid Javid announced that this Budget will set out “ambitious plans to unleash Britain’s potential, level up across the UK and usher in a decade of renewal”.
This post-Brexit Budget will be the start of a new chapter for the UK economy as we look forward to the future, seizing the opportunities that come from getting Brexit done.
Finance Bill should now proceed
Now that the General Election is out of the way, the tax changes in the draft Finance Bill scheduled to take effect from April 2020 are now more likely to go ahead.
The key tax measures that are in limbo until legislated in the Finance Act 2020 are:
- Extending the IR35 off-payroll working rules to the private sector
- Restricting R&D repayable credit for SMEs
- The proposed 2% reduction in P11d car benefits
- Limiting Capital Gains Tax (CGT) private residence letting relief
If the changes to CGT private residence letting relief go ahead from 6 April 2020 it may be worth considering the disposal of a property that currently qualifies for this relief before 6 April 2020. Find out more about these changes to Capital Gains Tax here.
The off-payroll working rules will almost certainly proceed, even if not from 6 April 2020, and thus businesses and workers affected should prepare for the planned changes. Find out more about IR35 here.
Speak to our tax experts
We would be delighted to help you. If you would like more information or help with any tax related issues then please contact our Tax specialist, Ann Bibby on firstname.lastname@example.org or 01295 250401, or contact us here.