Budget Booklet 2020

Posted on March 12, 2020

Chancellor Rishi Sunak delivered the first Budget since the UK’s departure from the European Union and against the backdrop of the outbreak of coronavirus. He stated that the Budget was to meet “challenging times” being felt across the economy.

The key announcements were as follows:-

  • Personal allowance for income tax remains at £12,500 for 2020/21
  • No changes are made to the income tax rates and bands for 2020/2021
  • National insurance thresholds at which Class 1 and Class 4 NIC start to be paid increases from £8,632 to £9,500 from 6 April 2020
  • The lifetime limit for Entrepreneurs’ Relief is reduced from £10 million to £1 million from 11 March 2020
  • From 6 April 2020, the adjusted income and threshold income for pensions will both be raised by £90,000.
  • The pension minimum annual allowance will also be changed from 6 April 2020
  • The residence nil rate band for inheritance tax rises from £150,000 for deaths in 2019/2020 to £175,000 for deaths in 2020/21
  • Small and medium-sized businesses will be supported by the government refunding eligible Statutory Sick Pay (SSP) costs from COVID-19 related SSP
  • SSP is temporarily extended and additional financial support is available to those such as the self-employed not entitled to SSP
  • £3,000 cash grants available for those that qualify for small business rate exemption
  • The annual exempt amount for capital gains tax for individuals increases from £12,000 to £12,300 from 6 April 2020.
  • Corporation tax rates will not be reduced as previously announced but will remain at 19% from 1 April 2020
  • Business cars CO2 emissions thresholds used for determining the rate of capital allowances will be amended from April 2021
  • Different car benefit percentages for company cars are used for cars registered from 5 April 2020
  • The structures and buildings allowance introduced in October 2018 will increase from 2% to 3% from April 2020
  • From 6 April 2020, the maximum Employment allowance will be increased from £3,000 to £4,000
  • From 6 April 2020, IR35 off-payroll rules will be extended to medium and large businesses in the private sector
  • Business rates retail discount for properties with a rateable value below £51,000 will increase from one third to 100% from 1 April 2020 for one year for some businesses
  • Postponed accounting for VAT will apply to all imports of goods from 1 January 2021
  • From April 2020, the National Living Wage will increase to £8.72 per hour
  • UK residents will need to make a payment on account of capital gains tax liability following the completion of a residential property disposal for disposals on or after 6 April 2020
  • Corporation tax relief for intangible fixed assets will be extended from 1 July 2020
  • Fuel duty will remain frozen for the 2020/21 tax year

Download your full copy of the Garratts Budget Report 2020.

If you would like to discuss any of the issues raised by the Budget, please do contact us.

Leave a Reply