The hot weather and the excitement of recent sporting events has not prevented the Government from publishing the draft Finance (No 3) Bill on 6 July. The bill will be presented to Parliament after the budget announcement in Autumn 2018 and will ultimately be enacted as the Finance Act 2019.
BUSINESS TAXATION: Entrepreneurs Relief conceded to diluted shareholdings
From 6 April 2019, the Entrepreneurs Relief rules are to be changed to allow company founders to keep their relief after an additional fund-raising round has diluted their equity to below 5 percent. They will need to make elections to be treated as disposing of their shares at that point and to defer the gain until the shares are actually sold.
PROPERTY TAXATION: Non-residents to be welcomed into property tax
Non-residents are to be taxed on all UK immovable property, commercial or residential. It will impose corporation tax on non-UK land resident property income from 6 April 2020. From 6 April 2019, gains on interests in UK land realised by non-resident individuals and companies (including certain indirect disposals) will be brought into charge if not already chargeable and the Annual Tax on Enveloped Dwellings (ATED) – related gains charge will be abolished. A 30 day payment deadline will apply to all disposals.
New rules will drastically reduce the payment window for capital gains tax on residential property 30 days after completion, starting in 2020. Attempts by professional advisors to limit this to 60 das have been rejected. The stamp duty payment deadline is being cut from 30 days to 14 days for transactions made from 1 March 2019
PROPERTY TAXATION: Restriction on relief for absentee landlords
An additional test for landlords claiming tax relief under the Rent-a-Room Scheme will be introduced. From April 2019 the £7,500 allowance will only be available to individuals who are present, or who have a family member present in the property for at least some of the time that the room is let out. This rules out letting the whole house while on holiday through online services, such as Air BnB and Windu, or running a bed and breakfast or guest house while living elsewhere.