Archive for March 2020

The Budget and Covid-19

The Budget on 11 March 2020 announced a three point plan in response to COVID-19 designed to support public services, individuals and businesses. The Government is going to continue to monitor the situation and stands ready to provide further support, should it be needed. Further support was hinted at on 16th March. Support for Businesses…
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Budget 2020

The Chancellor Rishi Sunak presented his first Budget on Wednesday 11 March 2020. In his speech he stated ‘we are at the beginning of a new era in this country. We have the freedom and the resources to decide our own future’. ‘It is a Budget of a government that gets things done’. Our summary…
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Capital Taxes – Budget 2020

Capital gains tax (CGT) rates The current rates of CGT are 10%, to the extent that any income tax basic rate band is available, and 20% thereafter. Higher rates of 18% and 28% apply for certain gains; mainly chargeable gains on residential properties with the exception of any element that qualifies for Private Residence Relief. There…
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Employment Taxes – Budget 2020

National Insurance thresholds The government has recently announced National Insurance thresholds for 2020/21. Most thresholds will rise with inflation. Two thresholds, however, will rise by 10% from £8,632 to £9,500: the primary threshold – which sets the level at which employees start to pay Class 1 National Insurance contributions (NICs) the lower profits limit –…
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Other Matters – Budget 2020

VAT E-publications The government will introduce legislation to apply a zero rate of VAT to e-publications from 1 December 2020, to make it clear that e-books, e-newspapers, e-magazines and academic e-journals are entitled to the same VAT treatment as their physical counterparts. Tampon tax From 1 January 2021 the government will apply a zero rate…
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Personal Tax – Budget 2020

The personal allowance The personal allowance is currently £12,500. Budget 2018 announced that the allowance will remain at the same level in 2020/21 and then increase by CPI. There is a reduction in the personal allowance for those with ‘adjusted net income’ over £100,000. The reduction is £1 for every £2 of income above £100,000….
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