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Budget 2018

Please click here to see our summary of the key announcements in the 2018 Budget. We hope you find it useful and interesting.

The Chancellor has laid out details signalling the end to austerity in a statement delivered between key meetings in the Brexit negotiations. Following good news from the OBR, which reported borrowing £13 billion lower than forecast in March, some of the pressure was off for Mr Hammond.

Expectation leading up to the Budget had been for tax rises, with various revenue raising options discussed ahead of the statement. Despite this, the headline changes announced by the Chancellor included some good news for taxpayers and businesses:

  • The personal allowance will be raised to £12,500 from April 2019, one year earlier than previously planned. At the same time, the higher rate threshold will rise to £50,000, also a year ahead of schedule.
  • The pension lifetime allowance will increase to £1.055 million for 2019/20, with no change to the annual allowances.
  • The VAT registration threshold has been frozen for another two years, meaning it will be £85,000 until 2022.
  • The annual investment allowance (AIA) will increase to £1 million for all qualifying expenditure on plant and machinery made between 1 January 2019 and 31 December 2020.
  • Business rates for retail properties with a rateable value below £51,000 will be cut by a third. Local newspapers will continue to receive a £1,500 discount and public lavatories will receive 100% business rate relief. These reductions will apply until 2021 when the rates will be re-evaluated.
  • Fuel duties were frozen for the ninth year in a row, despite some speculation that the Chancellor would scrap the freeze.

It is worth noting that the draft Scottish Budget will be published on 12 December, which will include details of any changes to income tax rates and thresholds there for 2018/19. 

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The information regarding taxation is based on our understanding of law, HM Revenue & Customs practice and current legislation, which may be altered and depends on the individual financial circumstances of the investor. The value of investments may fall as well as rise.

If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please call us to discuss them.

 

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My husband and I have been with Highwood for three years. After our previous experiences with financial advisers, it was an enormous relief to find someone who explains everything in language we understand, who sets out the detail of our investments and importantly any charges incurred in a transparent way, and who always responds quickly to any queries we have. We came to Highwood at a time when we had to sort out my mother’s estate and had lots of decisions to make. Michael ‘held our hand’ through the process, and helped to clarify the options we had, and made it all feel much less daunting. We would (and do) highly recommend Highwood.

Mrs Jill Russell

Very simply, I cannot speak highly enough of Michael Gould and all that I have had the pleasure of dealing with at Highwood.  Knowledgeable.  Affable.  Personable.  Nothing is too much trouble and no question (however silly it may seem to you) too trivial for a quick and accurate answer.  

Most importantly, Michael ensures that he understands EXACTLY what you are trying to achieve long before you put anything into place.  

An excellent team, from top to bottom, that operate at the pinnacle of their field. 5 stars *****

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