Spring Statement 2019 at a glance
In a Spring Statement wholly overshadowed by Brexit and parliamentary votes, the Chancellor attempted to provide some economic and spending vision in the last Spring statement before 29 March 2019, but prefixed many of his announcements by “if we have a deal…”.
With businesses desperate for certainty, the Chancellor was unable to provide any further clarity and indeed the likelihood is that there will be another Budget once/if the UK leaves the EU and the road ahead is clearer.
Brief recap – what did we know already
Corporation tax reducing from 20% to 17% by 2020
Personal income tax allowance increases from April 2019 to £12,500 and Higher Rate Threshold to £50,000.
VAT threshold frozen at £85,000 for two years
Making VAT Digital starts 1 April 2019, and from 1 October 2019 trusts including charitable trusts and VAT groups etc.
Additional stamp duty on foreign buyers of UK properties
New loan charges on disguised remuneration starting 5 April 2019
Annual investment Allowance increased to £1m for 2 years
Employment allowance – from April 2020 reformed for NI bills below £100,000
CGT private residences relief – final 18 months exemption reduced to 9 months from April 2020
Entrepreneurs’ Relief – one year qualifying period increased to two years.
IR35 roll out to private sector from April 2020 will apply to large and medium sized businesses – consultation published
April 2019 – National Living Wage will rise by 4.9% to £8.21
Spring Statement 2019 key measures announced
The “UK economy is remarkably robust”
Inflation set to remain around 2%
Austerity will come to an end in the forthcoming spending review
If Brexit deal agreed, there will be a 3 year spending review before the summer recess concluded alongside the autumn budget
Housing – £3bn affordable homes guarantee scheme to help deliver 30,000 affordable homes
Late payments for small businesses – company audit committees must report in annual accounts on policies on payments
£100m for extra policing to cut down on knife crime