Landlords Association Recent Landlord News Quick Summary of October 2018 Budget

Quick Summary of October 2018 Budget

Summary of the Budget, anything that is property related or may have an impact on property is highlighted in blue. 

Relevant parts of the Budget for Landlords

  1. Remote Gaming Duty to increase to 21% for online gambling on “games of chance” from 2019
  2. All first-time buyers purchasing shared equity homes of up to £500,000 to be exempt from stamp duty
  3. £500m for the Housing Infrastructure Fund, designed to enable a further 650,000 homes to be built
  4. Lettings relief limited to properties where the owner is in shared occupancy with the tenant
  5. New partnerships with housing associations in England to deliver 13,000 homes
  6. Guarantees of up to £1bn for smaller house-builders
  7. Work allowances for universal credit to be increased by £1.7bn
  8. Private finance initiative (PFI) contracts to be abolished in future
  9. Business rates bill for firms with a rateable value of £51,000 or less to be cut by third over two years
  10. Measure to benefit 90% of independent shops, pubs and restaurants, cutting bills by £8,000
  11. £900m in business rates relief for small businesses and £650m to rejuvenate High Streets
  12. £10m to deal with abandoned waste sites

Budget October 2018 – Mixed Bag

  1. The personal allowance threshold, the rate at which people start paying income tax at 20%, to rise from £11,850 to £12,500 in April – a year earlier than planned
  2. The higher rate income tax threshold, the point at which people start paying tax at 40%, to rise from £46,350 to £50,000 in April After that, the two rates will rise in line with inflation
  3. National Living Wage increasing by 4.9%, from £7.83 to £8.21 an hour, from April 2019.
  4. Beer, cider and spirits duties to be frozen
  5. Cost of a bottle of wine duty to rise by 8p, in line with inflation, in February
  6. Tobacco duty will continue to rise by inflation plus 2%
  7. A packet of 20 cigarettes will go up by 33p at 18.00 GMT
  8. A ten gram pack of cigars goes up by 17p.
  9. Fuel duty to be frozen for ninth year in a row
  10. 2.4 million working families with children to benefit by £630 a year
  11. An extra £1bn to help welfare claimants transfer to the new consolidated benefit
  12. Public borrowing in 2018 to be £11.6bn lower than forecast in March, representing 1.2% of gross domestic product, (GDP) the total value of goods produced and services provided 1.2% annual average growth in departmental spending promised
  13. Extra £500m for preparations for leaving the EU
  14. A commemorative 50p coin to mark the UK’s departure from the EU
  15. An extra £160m for counter-terrorism police
  16. An extra £1bn for armed forces, for cyber-capabilities and the UK’s new nuclear submarine programme
  17. New 2% digital services tax on UK revenues of big technology companies, from April 2020
  18. Profitable companies with global sales of more than £500m will be liable
  19. New centre of excellence to manage existing deals “in the taxpayer’s interest”
  20. Annual investment allowance to be increased from £200,000 to £1m for two years
  21. Contribution of small companies to apprenticeship levy to be reduced from 10% to 5%
  22. New 100% mandatory business rates relief for all lavatories made available for public use
  23. Extending changes to the way self-employment status is taxed, from the public sector to medium and large private companies, from 2020
  24. Confirmation of an extra £20.5bn for the NHS over the next five years
  25. A minimum extra £2bn a year for mental health services
  26. New mental health crisis centres, providing support in every accident and emergency unit in the country
  27. More mental health ambulances and a 24-hour mental health crisis hotline.
  28. An extra £700m for councils, for care for the elderly and those with disabilities
  29. £10m for air ambulances
  30. A one-off £400m “bonus” to help schools buy “the little extras they need” this year
  31. Funding for 10 University Enterprise Zones
  32. A £30bn package for England’s roads, including repairs to motorways and potholes
  33. A 30% growth in infrastructure spending
  34. Opening the use of e-passport gates at airports – currently available to people from Europe – to those from the USA, Canada, New Zealand, Australia and Japan
  35. A new tax on plastic packaging which does not contain 30% recyclable material
  36. £60m for planting trees in England
  37. An additional £950m for the Scottish government, £550m for the Welsh government and £320m for a Northern Ireland Executive in the period to 2020-21
  38. New City and Growth deals for Belfast, north Wales and the Tay Cities area, which includes the cities of Dundee and Perth as well as Angus and the north part of Fife,
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