The Chancellor has just sat down from delivering his first Budget. Based on the speech, the main tax points referred to were as follows:
Coronavirus
- Confirmation that there will be no waiting days before SSP is paid
- SSP will be available to all those who are advised to self-isolate regardless of whether symptoms are shown
- ESA will be available from day 1 rather than day 8
- Temporary removal of the minimum income floor for universal credit
- SSP will be refunded by the government for all businesses with less than 250 employees
- HMRC Time To Pay services will be scaled up
- Package of measures introduced to support businesses claiming small business rate relief including a £3,000 cash grant
Individuals
- Entrepreneur’s Relief lifetime limit will reduce to £1m from £10m with immediate effect
- Pension Annual Allowance taper thresholds will be increased by £90,000 from April 2020
- Minimum Pension Annual Allowance will reduce to £4,000 for the highest earners
- National Insurance threshold will increase to £9,500 from April 2020
- New target set for National Living Wage at 2/3 of median earnings, estimated to be £10.50 p/hr by 2024
- Stamp Duty 2% surcharge to be introduced for non-UK residents from 2021
- ISA limits remain unchanged but Junior ISA limit will increase to £9,000 from £4,368 for 2020
- Legislation regarding chargeable event gain calculations on investment bonds will be amended with effect from today
- Off-payroll working proposals will go ahead from April 2020
Business Tax
- Corporation Tax rate will remain at 19%
- R&D expenditure credit will increase from 12% to 13% from April 2020
- Structures & Buildings allowance will increase from 2% to 3% from April 2020
- Employment Allowance to increase from £3,000 to £4,000 for small businesses
- Review of the EMI incentive scheme to be undertaken
Environmental Measures
- Climate change levy on electricity to be frozen but raised on gas from April 2022
- New plastic packaging tax to be introduced on packaging with more than 30% non-recyclable materials
- Red diesel tax relief will be abolished for most sectors in two years time but retained for agriculture, rail, domestic heating and fishing
- Ongoing support for installation of electric charging points
Duties and Miscellaneous
- Increase in spirits and beer duty will be cancelled
- Cider and Wine duties frozen
- Fuel duty remains frozen
- VAT on women’s sanitary products will be abolished
- VAT on digital publications will be abolished from 1st December 2020
As normal these are just some of the key points from the Chancellors speech. Further details of these, and other measures not referred to in the speech, will be reported in Muras Matters over forthcoming weeks.
If you would like to discuss how any of these changes may affect you please contact our Tax Director, Jenny Marks.
To see our other news items please visit our Muras Baker Jones – Blog.