2020 Budget Summary
The 2020 Budget contained a number of areas of interest for our individual and employer clients.
Particular areas of note are:
- Lettings Relief – With effect from 6 April 2020, Lettings Relief will only apply where the owner of a property is in shared occupancy with a tenant
- Pensions – Adjusted income and threshold income have been raised by £90,000 for 2020/21 onward so fewer people will be caught by the tapered annual allowance. However, for those with adjusted income over £300,000, the minimum level to which the annual allowance can taper down will reduce from £10,000 to £4,000 from 6 April 2020.
- National Insurance – The threshold above which Class 1 (employed) and Class 4 (self-employed) NIC is payable will rise by 10% to £9,500 from 6 April 2020
- Entrepreneurs’ Relief – the lifetime limit is reduced from £10 million to £1 million for disposals made after 11 March 2020
- Residential Property Sales – a reminder that with effect from 6 April 2020 a tax return must be filed and CGT paid within 30 days of the sale of residential property, unless gains are fully covered by Principal Private Residence Relief. The PPR final period exemption falls from 18 months to 9 months.
- Off-Payroll Working – Medium and large private businesses will not have to pay penalties for errors relating to off-payroll working in the first year after the new rules come into effect on 6 April 2020.
Click here for our 2020 Budget Summary
About the author
Alison Asher