Yesterday the Government gave this year’s first budget update. Here are some key points which may affect you:
Measures to mitigate the effects of Coronavirus:
- £12 billion package of tax and spending measures including grants and hardship funds for people a businesses affected.
- Statutory Sick Pay to be payable from first day’s absence and fully funded by the Government for 14 days.
- Business rates relief for the next year increased from 50% to 100% for retail businesses with rateable values up to £51,000.
Tax measures with immediate effect:
- Lifetime limit for gains eligible for Entrepreneurs’ Relief (taxed at 10% instead of 20%) reduced from £10m to £1m for disposals from Budget day.
- Duty on alcoholic drinks and fuel frozen.
Tax year 2020/21:
- No change to personal income tax allowances and rates: 2019/20 figures continue for a second year, as expected.
- Increase in threshold for National Insurance Contributions from £8,632 to £9,500.
- Research & Development expenditure credit increase from 12% to 13%.
- Structures and Buildings Allowance increased from 2% to 3%
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