Spring Statement 2019

The Chancellor Philip Hammond presented his Spring Statement on Wednesday 13 March 2019.

In his speech he provided an update on the economy while warning of the dangers of a no deal Brexit.

He has forecast UK growth to be 1.2% for 2019, increasing to 1.4% for 2020 with government borrowing expected to be £3 billion lower than forecast.

Personal Tax

Personal allowance
Although no new tax policies were announced in the Spring Statement, from 6 April 2019 the personal allowance rises to £12,500 and the higher-rate threshold rises to £50,000.

Tax avoidance
There is also to be further crackdowns on offshore tax avoidance and evasion with the “No Safe Havens 2019” policy.  This will utilise the now much wider exchange of financial account information between countries that has been introduced over the last decade.  If you feel that this may be an issue for you please contact us for advice.
Child Trust Fund

Draft regulations will be issued to ensure that Child Trust Funds retain their tax-free status on maturity.

Enterprise Investment Scheme
Draft guidelines for comment will be issued alongside draft legislation.  The document will contain guidelines stating HMRC’s proposed policy and practice for approving funds.  The legislation will include powers for HMRC to set appropriate conditions and approve funds.

Business Tax

Energy efficiency
The Chancellor has announced a consultation on energy efficiency schemes for small and medium sized business.  They are to look for evidence of an energy saving scheme that can be introduced to reduce bills for small and medium sized companies.  This would involve strengthening regulation and increasing minimum building standards to reduce energy usage.
Making Tax Digital
In his speech, the Chancellor has said that the government would not be mandating Making Tax Digital (MTD) for any new taxes or business in 2020. 

Capital Taxes

Structures and Building Allowance
The draft legislation for the Structures and Building Allowance has been published.  This sets out the detail of this new allowance which was announced in the 2018 budget giving some relief on expenditure on commercial buildings and structures.
CGT Private Residence Relief

A consultation has been announced on the changes introduced in the 2018 budget to lettings relief and the final period exemption.

Other Matters

Late Payments
There is good news for small companies that are paid late by large companies.  The chancellor has responded to this issue in part and a full response to last year’s call for evidence will be published shortly.

To view the 2018 Budget please click here

This publication is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.