March 2019 Spring Statement Summary 
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Here's our summary of the key contents from this month's Spring Statement 2019, which we hope you will find useful.


Sandwiched between a series of crucial Brexit votes, much of the Chancellor's Spring Statement consisted of appeals to parliament to deliver an orderly exit from the EU.

There weren't any major tax announcements, although Mr Hammond was able to launch a number of consultations and other papers. The subjects ranged from Making Tax Digital to Child Trust Funds and enterprise investment scheme funds.

April will see the usual changes to the income tax rates and allowances as well as national insurance contributions. This year, there will be another significant hike in the minimum auto-enrolment contributions for workplace pensions, further increases in the tax on company cars and another £25,000 added to the inheritance tax residence nil rate band, taking it to £150,000 .

Mr Hammond made clear some while ago that he wanted his Spring Statement to be a short financial briefing and he stuck to a no-frills script.

There were no new tax measures and only minor spending changes. The Office for Budget Responsibility (OBR) trimmed its projections for government borrowing, but Mr Hammond kept his powder dry for the forthcoming Spending Review.

While the Chancellor may have appeared to say little, his statement was followed by some announcements and the publication of a range of documents covering areas including:
  • Making Tax Digital (MTD) - the government confirmed a light touch approach to penalties in the first year of MTD's implementation. MTD will not be extended to any new taxes or businesses in 2020.

  • Apprenticeship levy - the timing of the reduction in the co-investment rate for employers from 10% to 5%, and the increase to 25% in the amount that employers can transfer to their supply chains, will be brought forward. These changes will take effect from April 2019.
     
  • Draft legislation for the new structures and buildings allowance for investments in non-residential structures and buildings announced in the 2018 Budget. The relief will be given as an annual 2% flat rate over 50 years for new commercial structures and buildings.
     
  • Review of time limits for the recovery of lost tax involving an offshore matter, comparing them with other time limits. It will set out the rationale for the charge on disguised remuneration loans and will be laid by 30 March 2019.
     
  • CGT private residence relief changes announced in the 2018 Budget to lettings relief and the final period exemption.
These documents are likely to result in legislation following the Autumn Budget.


 
If you have any questions about how the Spring Statement affects you, please get in touch.

Please also do feel free to share this with your own contacts via email and social media. In the meantime please don't hesitate to call us on 020 7710 5300 if you have any specific questions.

Kind regards,

John Leyden



 


 
 
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