Spring Budget Statement 2020

2020 Spring Budget Statement – Huge financial assistance to help the UK cope with the stresses of the coronavirus

The newly appointed Chancellor, Rishi Sunak, yesterday (11th March 2020) confidently announced a reassuring and spirited Spring 2020 Budget, with a repeated emphasis on the expression ‘getting things done’. This of course echoing the recent election campaign.

Download our Summary of the 2020 Spring Budget Statement here.

His initial focus was on the short-term measures needed to deal with the intense challenges the UK faces, as a result of the coronavirus pandemic. These measures amounted to an immediate £12bn fiscal stimulus, with more money available if required. There was help for both businesses and individuals.

For the coming year, 2020, statutory sick pay will be available to more people and so will some other social security benefits. Business Rates will be reduced or even eliminated for some smaller businesses – at least in the short term. Other immediate support initiatives for smaller businesses include greater access to bank lending, as well as enhancements to the HM Revenue and Customs’ ‘Time to Pay’ service.

The Chancellor is due to announce another Budget in the Autumn and so there were several consultations about possible future tax changes, including new proposals on the treatment of fund management companies, pension tax administration, and aspects of research and development tax credits. :

  • The changes to the taper of the pension annual allowances will mean that many fewer higher paid people – especially important for the NHS – will be hit by a reduced annual allowance.
  • The reduction of entrepreneurs’ relief to £1 million of gain had been extensively covered in the media beforehand and for a time leading up to yesterday’s announcement, abolition of the relief seemed a possibility.
  • But the more than doubling of the annual limit for Junior ISAs to £9,000 was a pleasant surprise.
  • Smaller businesses will welcome the increase in the NIC employment allowance to £4,000.
  • Publishers should be very pleased by the decision to make electronic publications zerorated for VAT.
  • From April 2021, only electric and other zero-emission cars will qualify for first year allowances and cars with emissions over 50 g/km will qualify for writing down allowances of just 6% a year.

We hope you find the issue of this Budget summary to be useful. If you have any questions about the attached summary’s contents, or indeed have any queries about how any aspects of your own personal tax or financial planning may be affected by yesterday’s Budget, then please do not hesitate to call us. We would be pleased to hear from you.

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