Budget 2020
Back to NewsThe 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
To download our budget booklet follow the link to Budget2020 and contact one of our Team if you would like to discuss any of the above changes.
