Budget 2020Back to News
The Chancellor Rishi Sunak delivered his first budget yesterday against the backdrop of the growing Coronavirus outbreak to unveil a series of giveaways.
Initiatives were announced to boost small business and tackle climate change. The loosening of the purse strings were funded by a reduction of the Entrepreneurs Relief lifetime allowance limit from £10m to £1m and from the abandonment of the reduction of corporation tax rate from 19% to 17%.
Here are some of the key tax announcements:
- No changes to personal income tax allowances and rates: 2019/20 figures continue for a second year, as expected
- Increase in threshold for National Insurance Contributions from £8,632 to £9,500
- Increase in thresholds for ‘Annual Allowance pensions taper’ from £110,000 and £150,000 to £200,000 and £240,000
- Lifetime Allowance for pensions increased in line with inflation to £1,073,100
- ISA allowance remains £20,000 per year, but Junior ISA/Child Trust Fund limits rise from £4,368 to £9,000
- As announced in advance, Corporation Tax rate remains 19% rather than being reduced to 17%
- No changes announced to ‘off-payroll working’ (IR35) rules, so they will apply to larger private sector employers from 6 April 2020 as previously announced
- No change announced to new rules for reporting and paying CGT on chargeable residential property, so deadline becomes 30 days
- Employment Allowance for small businesses increased from £3,000 to £4,000 of Employers’ NIC