Spring Budget 2020: A brief overview
Just four weeks into the job as Chancellor, Rishi Sunak has delivered not only his first Budget, but also the UK’s first Budget for 47 years as a non-EU member.
Quite an achievement for the 39 year-old, who has opened the spending and borrowing taps to create an infrastructure revolution.
The Treasury’s coffers are going viral, and not just because of Covid-19.
We have pulled out the key announcements from the Budget.
Further analysis will be available later.
Brief recap – key changes previously announced
- Corporation tax to remain at 19%
- NICs primary threshold and lower profits limit increased to £9,500.
- April 2020 – National Living Wage will rise from £8.21 to £8.72
- VAT threshold frozen at £85,000
- Employment allowance – from April 2020 reformed for NI bills below £100,000
- CGT private residences relief – final 18 months exemption reduced to 9 months
- CGT – 30 days to pay tax on sale of a UK residential property.
- IR35 roll out to private sector from April 2020 will apply to large and medium sized businesses, with a soft landing.
- Extra money for councils for social care, etc.
Spring Budget 2020 key measures announced
- SSP for those who are advised to self isolate
- Temp removal of minimum income floor for universal credit
- SSP refunded in full for up to 14 days (employers with less than 250 staff)
- Covid-19 business interruption loan scheme from banks
- Abolishing business rates for cinemas etc for one year
- 100% business rates retail discount extended to public venues
- Fundamental review into business rates system
- Cash grants to smallest business rate payers (max £3,000 per business)
- Employment Allowance increased from £3,000 to £4,000 from April 2020
- Tampon tax abolished from 1 January 2021
- Cancelled planned increase in spirit duty, beer & other alcohol
- Business rate discount increased from £1,000 to £5,000
- Fuel duty remains frozen
- Entrepreneurs Relief – Lifetime limit reduced from £10m to £1m from 11 March 2020
- Increase in R&D investment to a record £22bn a year
- Plastic packaging tax from April 2022
- Red diesel – tax relief abolished for most sectors (agriculture not affected)
- £600bn available for infrastructure spending
- New funding for schools
- Abolish VAT on digital publications by December 2020
- April 2021 – 2% Stamp duty surcharge for foreign buyers
- New tax crackdown on anti-avoidance measures
- Pensions tax system – taper threshold increased by £90,000 to £200,000
- Spending review to be carried out in the summer
Finance Bill 2020
The Finance Bill will be published on 19 March 2020, together with explanatory notes.