Chancellor Rishi Sunak has delivered his first Budget in the House of Commons, and the first since the UK’s departure from the European Union. Although it was inevitably dominated by the impact of the Coronavirus and included a range of short term support for individuals and businesses, the Chancellor also included a variety of other measures to “get things done”.
Please find enclosed a link to our Budget 2020 Summary Report intended to provide an overview of the latest announcements and recent measures most likely to affect you and your business. These include:
- Pensions tax changes – The income limit used in calculating the tapered annual allowance is increased and the minimum tapered annual allowance reduced
- Capital Gains Tax Entrepreneurs’ Relief – The lifetime limit is reduced from £10 million to £1 million for qualifying disposals made on or after 11 March 2020 (there are measures included to counter planning some taxpayers may have taken in anticipation of the restriction)
- Research and Development Relief – The rate at which Research & Development Expenditure Credits (RDEC) is paid will increase from 12 per cent to 13 per cent from 1 April 2020. The RDEC scheme applies to larger companies (over 500 employees) and also to SMEs who receive certain types of grants.
If you have any concerns or queries relating to the Budget 2020 announcements, our tax experts are available to guide you and to assist with bespoke solutions to ensure that you and your business are as tax efficient as possible. Contact or your usual Beavis Morgan Partner.