12 March 2020

Budget 2020 – All you need to know!

The Chancellor, Rishi Sunak, delivered his first ever UK Budget on Wednesday 11 March, which was postponed from its usual Autumn slot last year, due to Brexit negotiations.

As expected, there were no surprises announced and the Budget delivered much of what was predicted in advance. However, putting politics aside, the Chancellor announced that the NHS will get whatever it needs to get the country through the Covid-19 outbreak. Several measures were introduced to overcome the economic risks and financial impact of the Coronavirus, perhaps the biggest crisis to affect this generation.

But how will the Budget affect you, your family and your business. Our dedicated Budget team have analysed the announcement in the below summary, which offers a Budget Overview and includes key insights on areas that will be of importance to you.

FPM’s dedicated Budget team have analysed the announcement, which offers a Budget Overview and includes key insights on areas that will be of importance to you.

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Individuals

Entrepreneurs’ relief lifetime limit on gains will reduce from £10m to £1m effective from 11 March 2020
A £90,000 increase in the pension annual allowance taper threshold
National living wage rate targeted to reach £10.50 by 2024
National insurance threshold increasing from £8,630 to £9,500 in April 2020
SDLT surcharge for non-UK residents of 2% from 1 April 2021

Businesses

Corporation tax will remain at 19% in April 2020 despite already being legislated that the rate will reduce to 17% from 1 April
An increase in the structures and buildings allowance rate from 2% to 3%
Research and development expenditure credit increased from 12% to 13%
Employment allowance increase from £3,000 to £4,000

Despite making these announcements yesterday, in what is supposed to be the annual Budget, the Red Book clearly states that there will be a further Budget in Autumn 2020, so there is more to come.