Corporation Tax Rate Change
The current corporation tax rate is 19%. This rate will fall to 17% for the year beginning 1 April 2020.

Currently, lettings relief provides up to £40,000 of relief (£80,000 for a couple) to those who let out a property that is, or has been in the past, their main residence.

From April 2020 this relief will change and will only apply where the owner of the property is in shared occupancy with the tenant.

The final period capital gains tax exemption for owner-occupied residential property will also reduce from 18 months to 9 months.

A gain made on selling a residential property is subject to capital gains tax at 28% (18% for basic-rate taxpayers).

Contact us if you have any questions.

Consultation on extension of IR35 rules

HMRC has published guidance on the extension of the off-payroll working rules (also known as IR35) to the private sector, a year ahead of its implementation on 6 April 2020.

In the guidance, HMRC state that the responsibility to determine whether the off-payroll working rules apply will fall on the organisation receiving the individual's service. It outlines a four-step process which can be used to prepare for the changes, starting with identifying any individuals who are supplying their services through PSCs.

The consultation closes on 28 May and asks for responses on several matters, including the scope of the reform and its impact on non-corporate engagers; information requirements for engagers, fee payers and personal service companies (PSCs); and how to address disagreements on an individual's employment status.

The consultation also sets out HMRC's plans to provide education and support for those businesses that are affected.