What you need to know about the 2018 budget

This year’s Budget, due on 29^th October, will be three weeks earlier than last year  and will be announced a week after the Brussels Brexit Summit; a significant meeting which will be crucial in determining whether a deal is reached with the EU.

Although the tax industry generally does not expect anything significant to come from the Budget, several tax changes have already been recently announced. 

Prime Minister, Theresa May, has announced an increase in Stamp Duty Land Tax (SDLT) for foreign home buyers in the UK, who could face an additional 1% or 3% on top of standard SDLT rates, to help curb the increase in UK house prices. Money raised from this extra tax is to go towards alleviating the issue of rough sleeping. 

Furthermore, all couples in England and Wales will have the option of entering a civil partnership, rather than get married. The updates to the current law will aim to counterbalance traditional gender roles, but also importantly, will offer greater security to mixed-sexed couples. The changes could enable mixed-sex couples entering civil partnerships to benefit from a number of existing tax reliefs that are already available to those that are married. For example, entering a civil partnership could allow assets to be transferred between partners tax free, and be left on death free of Inheritance Tax. 

Details of how these proposals will work have not yet been announced, and as always, the devil will be in the detail. Individuals should seek advice before acting on these announcements. 

UK taxpayers will be hoping for stability in tax law from the Budget, particularly in light of the uncertainties surrounding the looming Brexit deadline. It will be interesting to see what else comes out of the Budget process and over the next 6 months! 

If you would like to discuss how you may be affected by these new proposals, or are seeking tax advice for you or your business, please contact a member of our team.