Budget Summary - 2020
On Wednesday Chancellor Rishi Sunak delivered his first Budget in the House of Commons, announcing the government's tax and spending plans for the year ahead.
His primary focus was on the short-term measures needed to deal with the challenges the UK faces as a result of the coronavirus pandemic.
Key changes for the forthcoming 2020/21 tax year include:
The changes to the taper of the pension annual allowances will mean that many fewer higher paid people – especially important for the NHS – will be hit by a reduced annual allowance.
The reduction of entrepreneurs’ relief to £1 million of gain was well trailed, and for a time abolition seemed a possibility. But the more than doubling of the annual limit for Junior ISAs to £9,000 was a pleasant surprise.
Smaller businesses especially will welcome the increase in the NIC employment allowance to £4,000.
Publishers should be very pleased by the decision to make electronic publications zero-rated for VAT.
From April 2021, only electric and other zero-emission cars will qualify for first year allowances and cars with emissions over 50 g/km will qualify for writing down allowances of just 6% a year.
If you have any questions about the contents of our Tax Tables or how any aspects of your tax and financial planning may be affected by the Budget, please get in touch.