IR35.

The government has announced that IR35 will be postponed for 12 months. This means that all individuals, business’ and limited companies that were affected can continue under current contracts and arrangements for the next year.

 

Entrepreneur’s relief lifetime allowance reduced.

The tax rate has remained the same at 10% for disposals of shares in trading companies so long as you meet the relevant conditions. However, the lifetime limit for qualifying disposals has been reduced from £10m to £1m.

 

National Insurance.

The threshold of earnings before National Insurance is payable is set to increase for individuals. In 2020-21 earnings must exceed £183 per week (£9,516 p.a.) before national insurance is payable.

 

Capital Gains Tax on Residential Property

From 6 April 2020, if you sell a residential property in the UK, you may be subject to new legislation regarding Capital Gains Tax. If the property is not your Principle Private Residence i.e. your main or only home, you will now have 30 days from the date of sale to tell HMRC and pay any Capital Gains Tax owed.

These rules are complicated and we would suggest that you contact us, ideally before a sale is agreed, to check if this applies to you. This will enable us to provide guidance and consider what reliefs are available which is particularly relevant if you have previously lived in the property or the property has been let. Where possible we can also provide an indication of tax liabilities ahead of an agreed sale.

Special rules apply if you live abroad, sell a lease or only part of your and if your property is compulsory purchased.