Spring Budget 2020 Summary
Yesterday, the newly appointed Chancellor of the Exchequer Rishi Sunak presented his first Budget. With only 4 weeks to prepare a Budget speech, Coronavirus was still very much in the background when Sunak became Chancellor on 13 February. In that short time, COVID-19 has become the launch pad for a series of measures the OBR has described as the biggest fiscal stimulus in nearly 30 years.
With £30 billion in giveaways (including £12 billion earmarked for Coronavirus measures), and very little tax raising, the age of austerity seems to be behind us for now. With the Coronavirus outbreak creating unprecedented uncertainty in such a short period of time, it is impossible to know whether the proposed measures will be enough.Read our full Spring Budget Summary
Significant announcements include:
- £12 billion package of measures to help individuals and businesses cope with COVID-19
- Increase in employee and self-employed NI contribution threshold to £9,500 for 2020/21
- Immediate cut in lifetime gains eligible for Entrepreneurs’ Relief from £10m to £1m
- Increase in thresholds for pension relief Annual Allowance tapering to £200,000/£240,000
- Off-payroll working rules (IR35) extended to private sector employers as previously announced
- Employment Allowance increased for 2020/21 to £4,000 of employer’s Class 1 NIC
- 30-day deadline for reporting and paying CGT on residential property applies from 6 April
Our Budget Summary aims to highlight the most important new rules and legislation introduced by the Budget that are most likely to affect your personal and business finances.
We will look at the new proposals to ensure we offer our clients the best advice to help them remain as tax efficient as possible. And our Wealth Management team are always on hand to help manage investments and pensions in these turbulent times.
If you would like more detailed one-to-one advice on any of the issues raised in the Budget, please get in touch or give us a call on 01903 234094.