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Business and Corporation Tax

No new changes to Corporation Tax rates with the rate still set to fall to 17% from April 2020.
From January 2019 to 31 December 2021 the Annual Investment Allowance for spending on qualifying plant and machinery is set to increase to £1 million from £200,000.
  Businesses with a rateable value of £51,000 or less will qualify for a 1/3 reduction in their business rates for two years from April 2019 onwards.
  A new ‘structures and buildings allowance’ of 2% will be available where contracts to build new non-residential structures are entered into on or after 29 October 2018.
A new 2% UK Digital Services Tax will be introduced in April 2020 to target ‘tech giants’ who generate revenues in excess of £500 million within the UK. The 2% tax will be charged on the revenues the company earns.
  IR35 reforms will become applicable to private sector companies from April 2020 and will be targeted towards medium and large sized businesses.
  From April 2019 the capital allowances ‘special rate’ for qualifying plant and machinery assets will reduce from 8% down to 6%.
From April 2020 Enhanced Capital Allowances (ECA) will be abolished for plant and machinery on the Energy and Water Technologies lists.
The fuel benefit charge and the van benefit charge will both increase by RPI from 6 April 2019.
A consultation is to be launched to review the criteria under which self-catering and holiday let properties become chargeable to business rates as opposed to Council Tax.

 

If you have any queries regarding your business, and how the changes announced in the budget may affect you, please contact one of our Tax Specialists on 01228 711888.