Now that the General Election is out of the way, the tax changes in the draft Finance Bill scheduled to take effect from April 2020 are now more likely to go ahead.
The key tax procedures “in limbo” until authorised in the Finance Act 2020 are:
- Extending the “off-payroll” working rules (also known as IR35) to the private sector.
- Restricting R&D repayable credit for SMEs.
- The proposed 2% reduction in P11d car benefits.
- Limiting Capital Gains Tax (CGT) private residence letting relief.
If the changes to CGT private residence letting relief goes ahead from 6 April 2020, it may be worth considering the disposal of a property that currently qualifies for this relief before 6 April 2020.
The “off-payroll” working rules will almost certainly proceed, even if it is not from 6 April 2020, businesses, workers and contractors affected should prepare for the planned changes.
Please give us a call on 01733 371180, if you need help in assessing the likely impact on your business.