29 October 2018
“Era of austerity is finally coming to an end”
The Chancellor presented his Autumn Budget to the House of Commons today, Monday 29 October. Read the key points below.
Hammond announces new tax on plastic packaging containing less than 30% recyclable plastic and allocate £10m for waste disposal.
He says: “I have looked at the case for a tax on plastic cups. I am not convinced it would affect behaviour. But I will return to this issue if more progress is not made.”
Hammond: “I will consult on how modernisation of planning rules can facilitate the transformation of the high street.”
Hammond says he will extend the regulations on IR35 to the private sector, but delay the changes until April 2020, and only apply them to medium and large businesses.
Business and digital
- New digital services tax on UK revenues of big tech companies, from April 2020. This is aimed at companies with sales of more than £500m.
- Private finance initiative (PFI) contracts to be eradicated in the future.
- Annual investment allowance to be increased from £200,000 to £1m for 2 years.
- Contribution of small companies to the apprenticeship levy to be lowered from 10% to 5%.
- £900m in business rates relief for small businesses and £650m to rejuvenate High Streets.
- Hammond says he has been encouraged to scrap entrepreneurs’ relief, but won’t and instead will extend the qualifying period from 12 months to two years.
- A further £500m for the Housing Infrastructure Fund (now at £5.5 billion), to unlock 650,000 homes.
- Hammond says he wants to keep private homes out of capital gains tax. But in some cases this is being abused, and so he will change the rules with regard to lettings.
- Extra £500m for preparations for departure from the EU.
- Spring Statement in March 2019, could be upgraded to full Budget if it’s required.
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