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Autumn Budget 2018 – Key Takeaways

Autumn Budget 2018 – Key Takeaways

Autumn Budget 2018 – Key Takeaways

On first review there were not too many issues in yesterday's Autumn Budget. In particular the anticipated further reduction in the pensions annual allowance did not take place.

However as always, the devil is in the detail and  Scott Hood, our Trust and Estate Planning Consultant, has highlighted some areas which may warrant a closer look. If you have any clients who you feel may be impacted by any of these points and require further information, please contact us.

• The taxation of gains by non-UK residents on UK immovable property was expected, with Annual Tax on Enveloped Dwellings (ATED) related CGT being abolished.

• The minimum qualifying period for entrepreneur's relief has been extended from 12 months to 2 years.

• The government appears to be going ahead with a consultation (announced Autumn 2017 budget) on the simplification of trust taxation.

• The pension Lifetime Allowance is being increased to up to £1,055,000.

• Expansion of potential beneficiaries for employee funded life cover and QROPS so as not to incur a tax charge.

• Capital Gains Tax Annual Exempt Allowance will be GBP 12,000 from April 6th 2019.

• Income Tax Personal Allowance will be GBP £12,500.

• Clarification on a couple of Residential Nil Rate Band points for IHT.

• Legislation to confirm HMRC view that additions to Excluded Property Trusts by a UK domicile are not excluded property.

• 30-day payment window for UK residents disposing of residential property from 2020 when there will be a Capital Gains Tax charge.

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