Budget Headlines 11 March

Budget 2020 – tax changes summary

·        Income tax – no changes to personal allowance or basic rate, higher rate and additional rate bands.

·        NIC threshold up to £9,500 from April 2020.

·        Increase flat rate deduction for homeworking from £4 to £6 per week from April 2020.

·        Two tapered annual allowance thresholds for pension contributions will be raised by £90,000. From 2020-21 the “threshold income” will be £200,000 -individuals with income below this level will not be affected by the tapered annual allowance, and the annual allowance will only begin to taper down for individuals who also have an “adjusted income” above £240,000. The minimum level to which the annual allowance can taper down will reduce from £10,000 to £4,000 from April 2020 for those individuals with total income (including pension accrual) over £300,000.

·        CGT - entrepreneurs relief has been retained but the lifetime allowance will be reduced from £10m to £1m.

·        CT no change in the rate - reversing the planned reduction to 17%

·        SDLT - 2% SDLT surcharge on non-UK residents purchasing residential property in England and Northern Ireland from 1 April 2021.

·        VAT - zero rate of VAT to e-publications from 1 December 2020.

Liz Hooley