Following last month’s budget, it is, for most people, a case of no change despite several rumours circulating in the previous weeks. The main contents with regard to VAT and Duties were as follows:
VAT
Despite rumours, there was no changes announced in the budget concerning either the registration turnover limits or the rates of VAT which remain as follows:
Standard Rate 20%
Reduced Rate 5%
Registration Limit £85,000
Deregistration Limit £83,000
Annual & Cash Accounting £1,350,000
Flat Rate Scheme £150,000
The turnover limits apply to any period of 12 consecutive calendar months and do not depend upon any accounting period dates.
The turnover limits will apply until at least 31st March 2020.
Other Duties
Most duties remain unchanged. However a new relief for First Time Buyers in respect of Stamp Duty Land Tax has been introduced. First Time Buyers purchasing a residential property eill pay SDLT ate the following rate:
Property price up to £300,000 Nil
Property price £300,000 – £500,000 5% on amount above £300,000
Property price above £500,000 Normal rates of SDLT
The normal rates of SDLT range from 0% on properties costing up to £125,000 to 12% on the amount by which the price exceeds £1.5m.