The general election is being held on 8th June so look out for a new budget shortly thereafter.
But the big news is the cuts.
Following previous announcements, a big Finance bill had been drafted, for approval over the Summer, to bring in a lot of the associated new rules
But Theresa May announced a snap election. Many of the new rules are controversial and some would require extensive debate. So the shadow cabinet were consulted and the uncontroversial items and those requiring little or no discussion were agreed, for introduction now. The others were put aside, some cut out altogether and some postponed until discussion could be held. This mean the reduced bill could be passed before parliament was dissolved for the election.
- Reduction in tax free dividend allowance from £5000 to £2000 – scheduled for 5/4/2018 – not now changing
- £1000 exemption for casual earnings ( for E-bay sales etc) – not coming in
- £1000 exemption for casual property income ( for drive rental, or letting your house out while you went away etc) – not coming in
- Substantial shareholders eligibility for entrepreneurs relief – extension cut
- Corporation Tax losses extension of relief to other lines of business – cut
- New Tax breaks for ultra-low emission vehicles – dropped
- 3 months grace for paying back benefits instead of being taxed on them – dropped
- Capital Allowances for installation of charging points for electric vehicles – dropped
- IR35 in the public sector – this WAS brought in but private sector retail business working for the NHS such as opticians and pharmacies specifically EXCLUDED from the legislation]
- The start date for quarterly online reporting for sole traders (Making Tax Digital – MTD rules) have been postponed by a year
- Deemed domicile for long standing residents in respect of Capital Gains – has been omitted
- Watch this space for what happens after the elections – also see out budget tweets