11 Mar Budget 2020 Summary

Was Rishi Sunak’s first budget really a budget to ‘get things done’? In truth it was overshadowed by the Coronavirus crisis and surprise drop in interest rate to 0.25%. Here is a summary of the main points which will impact you and your business:

  • Interest rate cut to 0.25%
  • Cut in the lifetime limit to entrepreneurs’ relief from £10m to £1m
  • A freeze in fuel duty with the duty exemption for agricultural use of red diesel untouched. Construction and plant businesses will cease to receive this exemption from 1 April 2022
  • Capital gains tax annual exemption for individuals will rise from £12,000 to £12,300 from 6 April 2020
  • National threshold to rise to £9,500
  • Corporation tax rate to be frozen at 19% for two years
  • Research and development tax relief increase to 13%
  • Annual investment allowance stays at £1,000,000 and is still expected to fall to £200,000 on 31 December 2020
  • Employment allowance to increase to £4,000 from 6 April 2020 – this reduces employers national insurance costs
  • National Living Wage for workers aged 25 and over will increase by 6.2% to £8.72 per hour on 1 April 2020
  • Pubs will receive a business Rates discount of £5,000 (this was £1,000)
  • Retail, leisure and hospitality sectors to have business rates abolished for businesses within those sectors with an annual rateable value below £51,000
  • Businesses that currently qualify for Small Business Rates Relief to receive funding of £3,000 per business – more detail to follow
  • VAT registration threshold to remain unchanged at £85,000
  • Removal of the minimum income floor for Universal Tax Credits due to Coronavirus. This could mean higher payments for many and make previously ineligible claimants eligible

If you would like any further information on any of the changes in todays budget please contact us.