When Will Budget Day Be Now?

Sajid Javid’s first budget was due to take place on 6 November 2019.  Due to the general election this did not happen. There will be no announcements made about dates for future budgets until a new government is elected.

The current political uncertainty makes it difficult for us to give clear tax advice as a number of key proposals included in the draft Finance Bill, scheduled to take effect from April 2020, might not now become law.

The key tax measures currently “in limbo” until legislated for in Finance Act 2020 are:

• Extending the “off-payroll” working rules to the private sector
• Restricting R&D repayable credit for SME’s
• Limiting the Capital gains tax private residence and lettings reliefs
• The proposed 2% reduction in P11d car benefits

The “off-payroll” working rules will almost certainly proceed, even if not from 6 April 2020, and thus businesses and workers affected should carry on preparing for the planned changes.

In addition Boris Johnston announced on 18 November 2019 that, if elected, a new Conservative government will put on hold the Corporation tax rate cut to 17% from April 2020.  They will hold the Corporation tax rate at 19% with the additional £6bn raised being spent on the NHS and other services.

IR35 tax rules for individuals working via their own companies for a medium or large business

Research & Development (R&D) tax credit to be restricted

Capital Gains Tax (CGT) Private Residence Relief Changes