Key changes for the forthcoming 2019/20 tax year include:
- The personal allowance will be raised to £12,500 from April 2019, one year earlier than previously planned. At the same time, the higher rate threshold will rise to £50,000, also a year ahead of schedule.
- Scottish tax bands have been revised, but the higher rate tax threshold remains unchanged at £43,430 – much lower than in the rest of the UK.
- The Junior ISA limit will rise to £4,368, although other ISA limits are unchanged.
- The pension lifetime allowance will rise to £1.055 million, with no changes to the annual allowances.
- The VAT registration threshold has been frozen for a further two years, meaning it will be £85,000 until April 2022.
- Entrepreneurs’ relief has been kept, but the minimum qualifying period has been extended to 24 months, to encourage longer-term investments.