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Autumn Budget 2018
Entrepreneurs’ Relief: definition of a ‘personal company’
A new measure adds two new tests to the definition of a ‘personal company’.
Both conditions, as well as the existing ‘share capital’ and ‘voting rights’ conditions must be met throughout the specified period. The new conditions require the individual to be beneficially entitled to at least:
y y 5% of the company’s distributable profits
y y 5% of its assets available for distribution to equity holders in a winding up.
The measure has effect for disposals on or after 29 October 2018.
Taxing gains made by non-residents on UK immovable property This measure is intended to ensure equal treatment between UK residents and non-UK residents on disposals of UK immovable property.
It extends the scope of the UK’s taxation of gains accruing to non-UK residents to include gains on disposals of interests in non-residential UK property.
It also extends the charge on gains on disposals of interests in residential property to diversely held companies, those widely held funds not previously included, and to life assurance companies.
The measure also taxes non-UK residents’ gains on interests in UK property rich entities (for example, selling shares in a company that derives 75% or more of its value from UK land).
The measure will have effect for disposals made on or after 6 April 2019. Anti-forestalling measures are in place.
CGT payment window
UK residents will be required to make a payment on account of CGT following the completion of a residential property disposal. The new legislation will also replace and extend the existing reporting and payment on account rules for non-UK residents.
The above changes to the legislation will apply to disposals by non-UK residents on or after 6 April 2019. For UK residents the changes will have effect for disposals on or after 6 April 2020. CGT private residence relief: reform of ancillary reliefs From April 2020 the government will make two changes to private residence relief. The final period exemption will be reduced from 18 months to nine months. There will be no changes to the 36 months that are available to disabled persons or those in a care home.
Lettings relief will be reformed so that it only applies in circumstances where the owner of the property is in ‘shared-occupancy’ with a tenant.
"There will be no cakes on the table, for anyone. There will be only salt and vinegar" Donald Tusk, President of the European Council
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