On the 11th March the Chancellor presented his 2020 budget.
“get it done” was a recurrent phrase. It could equally have been “get it spent” or “get it borrowed” as Mr Sunak announced a raft of spending initiatives with few supporting tax increases.
- From April 2020 the national insurance contributions employment allowance will increase from £3,000 to £4,000.
- The capital gains tax annual exempt amount for individuals and personal representatives will rise to £12,300 for 2020/21.
- For disposals on or after 11 March 2020, the lifetime limit on gains eligible for Entrepreneurs’ Relief, (which offers a reduced 10% rate of CGT on qualifying disposals) will be reduced from £10 million to £1 million.
- The Budget included several reliefs from business rates, some of them temporary in response to coronavirus (already substantially updated)
With the current issues changing on a daily basis, including changes already to the information in the budget document, we will look to keep you informed as much a possible. Please feel free to call us to discuss any issues or concerns and we will do our best to help.
IR35 (announced late yesterday) – affecting subcontractors to large and medium sized companies – introduction to be delayed by a year.to April 2021.
Please also be aware of the change in Capital Gains tax reporting, outlined last year, which comes into effect from 6th April 2020.
Any direct disposal of UK residential property made after 6th April 2020, where there is a capital gain (e.g on let property – even if previously used as a main home) will have to be reported to HMRC and capital gains tax paid within 30 days of the completion date.
For further information or any queries, please do not hesitate to contact us.