Individual Savings Accounts (ISAs)
There has been a small increase in the annual Child Trust Fund and Junior ISA savings limit to £4,368. This is an increase of £108 in comparison to 2018/19 (£4,260). As with the standard ISA rules all income and capital gains within a Junior ISA or Child Trust Fund is tax free.
The table below shows the limits which can be invested:
|Standard Annual Limit||£20,000|
|Junior ISA annual limit||£4,368|
|Lifetime ISA annual limit||£4,000|
|Help to Buy ISA monthly limit (only available until 30 November 2019)||£200|
The annual allowance limit for personal pension contributions remains at £40,000. The annual allowance is reduced by £1 in every £2 when total income is in excess of £150,000 and reduced to a minimum of £10,000 where total income is over £210,000. Care does need to be taken when making personal pension contributions and specific advice should be sought to ensure that you are not impacted by the annual allowance excess charge.
The lifetime allowance for pension savings has increased from 6 April 2019 to £1,055,000 (£1,030,000 in 2018/19).
Capital Gains Tax
The capital gains tax annual exemption has increased to £12,000 (£11,700 in 2018/19) for individuals and £6,000 (£5,850 in 2018/19) for Trusts.
The basic rate of capital gains tax payable remains at 10% (18% for the disposal of residential property and certain other assets) and the higher rate is 20% (28% for the disposal of residential property and certain other assets).
Non Resident Capital Gains Tax
With effect from 6 April 2019, non-residents are now subject to capital gains tax on the disposal of all UK land and property (to include commercial property). Up until 5 April 2019, non-residents were only subject to capital gains tax on the disposal of UK residential property.
In addition, non-residents will also be subject to UK capital gains tax on the disposal of assets that derive at least 75% of their value from UK land, so called “property-rich” companies.
With the new capital gains tax regime, a new compliance system has been introduced, which non-residents will have to follow in reporting disposals of UK land and property and paying the associated tax.
Non-residents disposing of UK land (or assets that derive at least 75% of their value from UK land) must file a return within 30 days following the date of completion.
Author: Anthony Barron, Tax Manager, Plus Accounting
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