The sudden decision to call a General Election meant that draft laws passing through Parliament had to be quickly finalised or dropped. Many new tax measures were abandoned, including some which were due to come into effect on 1 April or 6 April 2017.
Two new allowances of £1,000 each were to apply from 6 April 2017. These were to cover income from let property, and trading or sundry other income, to avoid the need to report small amounts on a tax return. You now need to keep records of all your income and the related expenses, however small.
Individual landlords with annual turnover under £150,000 were due to apply a simplified form of accounting called the Cash Basis from 6 April 2017. The few transactions recorded since that date are unlikely to cause many problems, but you need to record carefully the date that all receipts were received for your lettings business.
A new deemed-domiciled regime was due to apply from 6 April 2017 to individuals not domiciled in the UK. If you are affected, you may have sold assets around that date to prepare for the new regime and have realised a capital gain unnecessarily. If you took advantage of the rules to cleanse foreign bank accounts, you may have moved money into the UK which you thought was not taxable. These funds may now be taxable so we need to discuss your tax position.
Where an individual has already drawn taxable pension benefits, their subsequent pension contributions are capped by the Money Purchase Annual Allowance (MPAA). These individuals won’t know how much they can pay in pension contributions in 2017-18 as the MPAA was set to reduce from £10,000 to £4,000 on 6 April 2017.
Businesses had expected to be able to claim 100% first year capital allowances on electric vehicle charging points installed from 23 November 2016 to 31 March 2019. These allowances may not now be available.
The new Government may reintroduce some or all of the above tax changes, but not necessarily from the same dates.