Budget 2018-Key Points


Income Tax:

  • Personal tax allowance will rise from £11,850 to £12,500

  • Income tax threshold for those paying tax at 40% will rise from £46.350 to £50,000

Property:

  • No stamp duty on homes worth £300,000; and reduced to 5% for homes between £300,000 and £500,000

  • Help to buy equity loans scheme extended for two years from April 2021 to March 2023

  • Stamp duty relief for first-time buyers extended to those buying shared ownership homes worth up to £500,000

Other Measures:

  • Pensions annual and lifetime saving limit will stay untouched, £40,000 and £1,030,000.

  • Living wage for over 25s to rise from £7.83 to £8.21

  • Charities will be able to claim 25% tax from gift aid on cash or card payments of up to £30 rather than £20

  • As from April 2020, large social media platforms, internet marketplaces and search engine will pay 2% tax on sales

  • Annual Investment Allowance will increase from £200,000 to £1m.

  • From 2020 IR35-off payroll rules will be expanded to self-employed (not genuine) and the private sector; small organisations will be exempt. The Contractors and not subcontractor will bear the onus to assess if the correct level of tax is being paid.


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