Capital Gains Tax (CGT)
As previously the UK tends to follow the US and we suspect that the CGT rate for individuals will be increased, could it go as far as 40% ?
Lifetime Cap on Principal Private Residence Relief (PPR)
PPR relief has been in existence since 1965, its aim was to give everyone in the UK the right to own their own home without the intention of making a gain. In recent years, generally in the industry, it is believed that this relief is being abused by individuals. Given the Chancellors latest attack on letting reliefs in 2018, we expect a cap on either the monetary value of PPR claimed in ones lifetime and / or the number of claims one can make.
CGT uplift on death abolished
When someone dies the beneficiaries of the estate inherit assets at probate value, essentially the CGT base cost is uplifted from what the deceased purchased the asset for to the market value on death. There is evidence to suggest that this could be abolished.
Business Asset Disposal Relief (BADR) on retirement
BADR exists as a result of the Chancellor's decision to abolish (attack) Entrepreneurs Relief, reducing the lifetime allowance. Similarly to PPR, it is considered that entrepreneurs are abusing the relief (that government introduced to encourage entrepreneurs to create businesses) and it has been muted that BADR will only be available on retirement from a business.
Income Tax on Dividend
Pretty obvious but we had to touch on the fact that this increase by 1 ¼% will be ratified on budget day.
Class 1A National Insurance
Again, we had to touch on the fact that this increase by 1 ¼% will be ratified on budget day.
Corporation Tax Increase
As with income tax, corporation tax will be increased to 25% on profits over £250,000. The rate will remain at 19% for profits under £50,000 with a marginal rate for profits in between.
The end of the P11d?
It has been widely commented that all benefits received by employees should be processed through the payroll. Ultimately meaning that employees will pay Class 1 National Insurance on those benefits and the death of the P11d regime.
Reduction to Business Property Relief (BPR) on Inheritance Tax (IHT)
When someone dies holding qualifying business assets the values of those business assets are included in the estate but receive a 100% relief. Certain assets only qualify for 50% BPR. We believe that there will be a reduction in the relief or indeed a cap based on the value of the total estate.
A bit of fun. In the small print we are hoping to see a doubling of the allowable expense before which tax reliefs are restricted for the employer and potential taxable benefits on the employe