2020 Budget Report

We are pleased to enclose out 2020 budget for your attention. Some of the more interesting/concerning points are:
· The lifetime limit on qualifying disposals eligible for the 10% tax rate is reduced from £10m to £1m for disposals made on or after 11 March 2020.
· Cash grants for businesses with a rateable value of less than £15,000
· A temporary loan scheme for SMEs
· A 30-day window for paying capital gains tax on property sales kicks in from 6 April – you will need to prepare your calculations before you sell any property.
· Corporation tax to stay at 19%
· Firms with rateable values of less than £51,000 in the retail, leisure and hospitality sectors won’t have to pay business rates from April 2020 for a full year
· A 6.2% increase in National living wages to £8.72 from 6 April 2020
· Principal private residence relief to fall to 9 months in the final period (originally the last 3 years)
· Reverse charge VAT in the construction industry confirmed to start the 1 October 2020
· A significant increase in the pensions taper relief
· Class 1 & Class 4 National Insurance threshold will rise to £9500 from April 2020
· Employment Allowance will rise to £4,000pa from April 2020
Enjoy your read and please contact us to discuss any points – clearly there is a lot of new information here and it will take a few weeks for the Government to filter down how everything will work.