As a property investor or small business, the main changes outlined in the November 2017 are.
Prior to the new budget, stamp duty had to be paid on all properties used for residential purposes that cost more than £125,000. The rate started at 2% of the price of the property, but gradually rose along with the value. First-time buyers will benefit from the change. Any first-time buyer purchasing a home with a value of up to £300,000 will not have to pay any stamp duty.
The SDLT filing and payment window on residential properties is to be reduced from 30 days to 14 days for transactions taking place after 1 March 2019. Given that typically monies are held on completion, by solicitors, to pay this liability, this may not impact too much on purchasers.
Landlords and small businesses under the VAT threshold (unchanged at £85,000 turnover) will have an extra year to prepare for Making Tax Digital (MTD). April 2019 is now the start date to prepare before MTD becomes mandatory. Under MTD, businesses will use digital software to keep tax records and update HMRC quarterly.
The main rate of National Insurance Contributions(NICs) for the self-employed will increase. Currently, the self-employed may have to pay both Class 2 on profits of £5,695 or more and Class 4 NICs at 9% are paid on profits between £8,060 and £43,000. From 2018, Class 2 NICs will be abolished and Class 4 NICs will rise to 10% in April 2018 and to 11% in April 2019. Taken together, only a self-employed person with profits over £16,250 will have to pay more because of these changes.