We have pleasure in attaching our summary of the key announcements in the 2020 Budget.
The newly appointed Chancellor, Rishi Sunak, announced a spirited Budget with a repeated emphasis on ‘getting things done’, echoing the recent election campaign.
- The pension annual allowance income thresholds will each be increased by £90,000 from 2020/21 with the higher rate tax relief on pension contributions left unchanged.
- The employment allowance will increase from £3,000 to £4,000 although there have been some restrictions on eligibility.
- The tax free personal allowance will remain at £12,500 and the dividend allowance at £2,000 but the NI primary threshold will increase to £9,500.
- The lifetime limit for entrepreneur’s relief has been cut from £10 million to £1 million with immediate effect.
- From April 2021, only zero emission vehicles will get 100% first year allowances. Cars with emissions up to 50g/km will have an 18% a year writing down allowance, restricted to 6% for higher emitters.
- Several reliefs from business rates were introduced, although some of them temporary.
We trust that you find the enclosed Budget Summary useful and that it is a helpful basis for a discussion with us about your financial future.