For many farmers and landlords, the changes announced in Philip Hammond’s Spring Budget will not take effect until April 2018, which gives time to consider the detail and is to be appreciated. However, the changes already announced to tax relief on interest where some of the borrowing relates to let residential properties will have an impact from this April, so landlords should consider this if they have not already done so when arranging borrowing.
From April 2017 there will be an additional residence nil-rate band worth up to £175,000 per individual (£100,000 in 2017/18, £125,000 in 2018/19, £150,000 in 2019/20, and £175,000 in 2020/21), with the unused residence nil-rate band of a deceased spouse or civil partner being available to the surviving spouse.
This year’s Autumn Statement from George Osborne has seen a dramatic U-turn on tax credits helping to quell negative political feedback on a measure that was always more of a timing issue as the Universal Credit was introduced.
The capital allowances annual investment allowance (AIA) will be £200,000 from 1 January 2016. The limit is expected to remain at this level and is much higher than the £25,000 limit previously expected, although not as generous as the £500,000 limit applying up to 31 December 2015.