Chancellor Rishi Sunak unveiled his first budget on 11 March 2020. Our summary focuses on the range of tax and financial measures which may affect you.
Entrepreneurs’ relief lifetime allowance reduced to £1m
It had been widely reported that the chancellor would abolish the generous relief where gains on certain qualifying shares and business assets are only taxed at 10%. Instead the lifetime limit on gains that can attract the relief has been reduced from £10M to £1M. In effect we have come full circle as Gordon Brown introduced the relief with a £1M limit in 2008.
Pension tapered annual allowance raised
The chancellor has raised the pension tapered annual allowance threshold in response to reports that senior medical NHS staff were restricting their hours due to large, and often unexpected, tax bills being incurred.
From 2020/21 the threshold income at which the tapered annual allowance needs to be considered is being raised from £110,000 to £200,000.
Many higher earners will now be able to take advantage of the full £40,000 annual allowance for pension contributions.
Various new measures in response to Coronavirus
New measures announced included the following:-
A £3,000 cash grant for businesses that qualify for small business rates relief
100% discount on business rates for retailers and businesses in the hospitality and leisure sectors where the rateable value of the property is less than £51,000
A dedicated helpline (0800 0159 559) for companies and self-employed individuals who are concerned about meeting tax payments due to the Coronavirus.
The government will repay statutory sick pay paid for absences due to the Coronavirus. The refund is available to employers with fewer than 250 employees and covers absences of up to 2 weeks.
Our comprehensive Budget Summary outlines the key measures, including some of the less-publicised changes that may impact upon your business or personal finances. For a detailed overview of the 2020 Budget information, please read our 2020 Budget Summary.
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