Draft Finance Bill 2018-19 open for consultation
On 6 July 2018 HM Treasury published the draft Finance Bill 2018-19 which is open for consultation until 31 August 2018:
Finance Bill 2018-19 – here is a selection of items:
MTD penalties will be based on a points system.
Rent-a-room relief – government believes it is being abused by people providing short lets or holidays using Airbnb – from 6 April 2019 the taxpayer must be present for all or part of the time for which the room is let out.
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Entrepreneurs’ Relief – the rules are to be changed where additional equity funds are raised by the company on or after 6 April 2019 to allow the company founders to continue to qualify for ER even if their shareholding slips below 5% – elections have to be made.
SDLT – reduction in the payment deadline for SDLT from 30 days to 14 days for transactions made on or after 1 March 2019.
Payments on account – a 30 day deadline is proposed for paying CGT arising from the disposal of residential property. The 30 days will run from the completion date made by any person on or after 6 April 2020. A CGT return will be required within the same 30 day period. This will be independent of and additional to the self-assessment return!
Non-residents – who are not registered for self-assessment currently have to pay their non-resident CGT within 30 days of completion for disposals of residential property. The scope of CGT is to extended to all UK real estate for disposals made on or after 6 April 2019 – the 30 day period will apply. ATED related CGT will be abolished.
New trading and property income allowances were introduced retrospectively from 6 April 2017 by Finance (no. 2) Act 2017. Provisions were added into the Income Tax (Trading and Other income) Act 2005. There are two new allowances of up to £1,000 each for individuals with:
• Trading income
• Property income
HMRC are working with the ATT and LITRG among others to make sure these allowances and the complications surrounding them are well publicised. Detailed guidance on how these allowances work have only just been published which is contained in HMRC’s Business Manual and Property Income Manuals.
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