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Tax Tips November 2017

The Budget 2018 – Key updates

Stamp Duty:

Transfer or conveyances of non-residential property

The stamp duty on the purchase or transfer of non-residential property (including land) is increased from 2% to 6%. The new rate takes effect for conveyances or transfers of such property that are executed on or after 11 October 2017.

Leases of non-residential property

The rate of stamp duty charged on the premium component is increased from 2% to 6%. There is no change in the rates of stamp duty on the rent component of a lease. The new rate takes effect for leases that are executed on or after 11 October 2017.

Consanguinity relief and agricultural property

The consanguinity rate of stamp duty was due to expire on 31 December 2017 but is to be extended for another three years. Conveyances or transfers of agricultural property between certain blood relatives (subject to certain conditions) on or after 11 October 2017 will be charged at 1% of the consideration instead of being set at half the rate of stamp duty that applies to non-residential property. This means that the amount of stamp duty payable will remain unchanged.

Benefit in Kind:

Electric Cars and Vans

From 1 January 2018 to 31 December 2018, where an employer provides an employee or director with an electric car or van, no taxable benefit will arise for the employee or director. This exemption is limited to cars or vans which derive their motive power solely from electricity.

Corporation Tax:

Accelerated capital allowances for energy-efficient equipment

The accelerated capital allowances scheme for energy-efficient equipment is being extended for a further three years until 31 December 2020.

Capital allowances for intangible assets

A cap of 80% will apply in respect of the amount of capital allowances for an intangible asset, and any related interest expense, that may be deducted from relevant trading income arising from the intangible asset in an accounting period. The cap applies in respect of expenditure incurred on intangible assets on or after 11 October 2017.