1 November 2018

Autumn Budget 2018: Not as bad as feared and indeed relatively generous

Key issues for people and businesses who are interested in real property


  1. The Government will publish a consultation in January 2019 on a SDLT surcharge of 1% for non-residents buying residential property in England and Northern Ireland.
  2. Property developers have welcomed the increase of the SDLT exemption to £500,000 for shared ownership.

Principal Private Residence (PPR)

Some tightening up, but not the cap on claiming relief that had been rumoured. From April 2020 a seller will only be able to benefit from PPR for the period in which the property is let if he is in shared occupation with the tenant. The final period of exemption will be reduced to 9 months from 18 months.

Capital Allowances

  1. The government will increase the Annual Investment Allowance (AIA) from £200,000 to £1 million to help businesses to invest and grow: for a limited period (1 April 2019 to 31 December 2020).
  2. From 29 October 2018 (Budget Day), businesses will be able to deduct 2% of the cost of any new non-residential structures and buildings off their profits before they pay tax; but
  3. In part (1) and (2) are funded by a reduction in the special rate of writing down allowances for specific quasi structural/long life assets (lift shafts, certain types of lighting etc) from 8% to 6%.

CGT- changes to entrepreneurs relief

  1. effective for disposals on or after 29 October 2018 that in addition to 5% of voting rights, that the shareholder must also be entitled to at least 5% of the distributable profits and net assets of the company to claim the relief (in addition to the requirement of being an employee or office holder) ; and
  2. from 6 April 2019 the qualifying period will extend from 1 year to 2 years.

Stamp duty

Consultation paper to be issued on 7 November with a view to introducing a general connected party market value rule.


No changes: there had been fears regarding restrictions to BPR/APR.


Widely rumoured changes to higher rate tax relief or changes to the age at which 25% of the pension may be withdrawn tax free were not introduced or even referred to.


The Finance Bill will be published on 7 November 2018 and will provide interesting insight into these and other areas.

Please contact Heather Corben or Elizabeth Small if you have any further questions or comments.

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