OCM Budget Summary 2018

Budget 2018
In a longer than usual Budget speech, and in a slightly more jocular than usual mood, the Chancellor
laid out the government’s vision for post
Brexit Britain. With a raft of measures aimed at shoring up
businesses, infrastructure and the
health service, Mr Hammond used the better than expected
public finances to present an upbeat programme. Leaving some of the major announcements for
last, this was a Budget to mark the coming of the end of austerity.
Some of the main announcements were:
The personal allowance will be raised to £12,500 from April 2019, one year earlier
than planned. The higher rate threshold will also rise to £50,000 from April 2019,
also a year earlier than planned, and will remain at the same level in 2020/21.
The lifetime allowance for pension savings will increase to £1,055,000 for 2019/20 in
line with CPI.
The national living wage will increase from £7.83 an hour to £8.21.
The annual investment allowance (AIA) will increase to £1 million for all qualifying
investments i
n plant and machinery made on or after 1 January 2019 until 31
December 2020.
For entrepreneurs’ relief, the minimum period throughout which the qualifying
conditions for relief must be met will be extended from 12 months to 24 months
from 6 April 2019.
From 1 April 2020, companies will be subject to a 50% limit on the proportion of
annual capital gains that can be relieved by brought
forward capital losses.
Companies will have unrestricted use of up to £5 million capital or income losses
each year.
Business rates bills will be cut by on
third for retail properties with a rateable value
below £51,000 for two years from April 2019.
Capital gains tax lettings relief will only apply where the owner of the property is in
shared occupancy with the tenant. The fi
nal period exemption will also be generally
reduced from 18 months to nine months.
The VAT registration threshold be maintained at the current level of £85,000 until
April 2022.