Over 30 million Brits will have to pay less income tax
About 32 million Brits will pay less income tax than they did in previous years, as the government’s Finance Bill has passed.
The Budget that was announced in October 2018, was passed through parliament on Tuesday morning, paving the way for its measures to be introduced in the spring. The Finance Act 2019 comes in against a backdrop of the highest wage growth in a decade, and a deficit cut by four fifths since 2010.
A basic rate taxpayer will now pay £1,200 less income tax than they did in 2010, thanks to the government’s changes, which will “give people more help with the cost of living”, it said.
As well as cutting taxes for millions of people, a year earlier than planned, fuel duty has been frozen for a ninth year in a row, and beer, cider and spirits duty have also all been frozen.
The act also means first-time buyers will be eligible for relief from stamp duty on shared-ownership homes, to help them realise their dream of owning their own homes.
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And businesses will benefit from a new capital allowance for qualifying non-residential structures and buildings, and an increase to the Annual Investment Allowance to £1m for two years.
In other changes, those who try to reduce their tax bill by holding intangible property abroad will be liable to pay what they owe in the UK, and non-UK residents will be liable for capital gains tax on immovable UK property.
The Bill has also introduced rules to prevent firms fragmenting profits between unrelated entities to avoid tax.
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Mel Stride, financial secretary to the Treasury, said: “The country can be proud of its hard work. The government’s balanced approach since 2010 has produced a stronger, fairer economy in which people and businesses can thrive.
“With wages growing at their fastest pace in over a decade, the income tax changes in the Finance Act will ensure that people can keep more of their hard-earned cash.”