As we enter the twenties, which may or may not be 'roaring', we take a look back at the last decade and the changes it has brought to the UK tax rules.

Overview

Here’s the top 40 run down.

2010/11…saw three Finance Bills due to the general election when the Conservatives took over from Labour, but there were few major tax changes.

  1. Disguised remuneration rules introduced with effect from 9 December 2010.
  2. The lifetime limit for Entrepreneurs' Relief was increased to £2m, then to £5m.

2011/12 was also a relatively quiet year.

  1. The rate of income tax relief on EIS investments increased from 20% to 30%.
  2. The CGT rate increased to 28% for higher rate taxpayers on all gains.
  3. The lifetime limit for Entrepreneurs Relief was increased again to £10m.

2012/13, yet another quiet year.

  1. ESC C16 (distributions on a winding up) was finally legislated for, with a £25,000 cap introduced for distributions to receive capital treatment on a striking off.
  2. The fixtures rules were introduced.

2013/14 was a particularly busy year in tax legislation.

  1. Higher Income Child Benefit Charge was introduced.
  2. The sideways loss relief cap was brought in for income tax losses.
  3. The introduction of the statutory residence test
  4. There were two new reliefs for innovative companies, the Patent Box and the Research and Development Expenditure Credit (RDEC) scheme.
  5. There were new anti-avoidance rules for mixed member partnerships.
  6. Real Time Information (RTI) reporting for PAYE came in.
  7. There was the introduction of the annual tax on enveloped dwellings (ATED).
  8. A new General Anti Abuse Rule (the GAAR) was introduced.

2014/15 changes were few, but significant.

  1. Entrepreneurs' Relief was blocked on the disposal of goodwill.
  2. Changes to the SDLT rules moved from the slab system to a fairer banding system.
  3. There was more partnership anti-avoidance legislation, with the salaried members rules. 
  4. The final period exemption for private residence relief was reduced from 3 years to 18 months.

2015/16 was an election year.

  1. We moved to one rate of corporation tax as marginal rates were abolished.
  2. The lower paid threshold for benefits in kind of £8,500 was lifted.
  3. Land and Buildings Transaction Tax (LBTT)  was introduced to replace SDLT in Scotland.
  4. Non-resident CGT was brought in for residential properties.

2016/17 brought some big changes.

  1. Major changes to the taxation of dividends, with tax credits abolished and new rates introduced.
  2. Temporary workplace travel rules were tightened. 
  3. A new anti-Phoenixing Targeted Anti Avoidance Rule (TAAR) was brought in.
  4. In SDLT a 3% surcharge brought in for second residential property purchases.
  5. The introduction of new tougher penalties for offshore tax avoidance

2017/18 saw another general election and the introduction of:

  1. Deemed IR35 rules for contractors working in the public sector.
  2. Restrictions to mortgage interest relief for buy-to-let landlords.
  3. New deemed domicile rules for long term UK residents applying to income tax, CGT and IHT.
  4. A new transferable marriage allowance and £1,000 trading and property allowance.
  5. Changes to the corporate loss relief rules especially for losses brought forward.

2018/19 was overshadowed by Brexit but…

  1. Land Transaction Tax (LTT)  was introduced to replace SDLT in Wales.
  2. Scottish income tax rates were applied and differed from the rest of the UK for the first time.
  3. A new structures and buildings allowance (SBA) was introduced for construction costs on new qualifying buildings and structures.

2019/20 has so far seen these changes with a delayed budget yet to come in February 2020.

  1. Making Tax Digital (MTD) commenced for VAT registered businesses.
  2. The loan charge came into force for disguised remuneration loans.
  3. Changes to the Entrepreneurs Relief qualifying conditions for share sales.
  4. Non Resident CGT to apply to all properties, residential or commercial.

We wonder what the next ten years will bring?

Links to our guides:

Freeview guides and tax rates
All our freeview at a glance guides and tax rates all in one place.

Finance Act updates and tax rolling planners
Our trackers cover key tax announcements during each tax year and lists measures effective and proposed from 6 April each year.

Tax rate comparison

Here’s the rundown in terms of tax rates:

 

2009/10

2019/20

% change

 

£

£

 

Personal taxes:

     

Personal allowance

6,475

12,500

+93%

Higher rate threshold

43,875

50,000

+14%

CGT annual exemption

9,6000

12,000

+25%

IHT nil rate band

312,000

325,000

+42%

       

Corporate taxes:

     

Small company rate

21%

19%

-10%

Full rate

28%

N/A

 
       

Other:

     

VAT

15%/17.5%

20%

+25%

       

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