Spring Budget Summary 2020

Published / Last Updated on 11/03/2020

Highlights for Budget 2020 as follows:

A reduction in the lifetime allowance for entrepreneurs relief from £10 million to £1 million.

An increase in the threshold income and adjusted income to £200,000 and £240,000 respectively with the minimum annual allowance falling from £10,000 to £4,000.

An increase in the JISA contribution limit to £9,000 from £4,368.

An improvement to the rules on top-slicing relief when chargeable event gains from a life policy cause adjusted net income to exceed £100,000.

An increase in the employee’s primary threshold limit to £9,500.

An increase in employer’s NIC employment allowance to £4,000.

An increase in the CGT annual exemption to £12,300.

The  announcement of a review to the taxation of UK funds with a view to determining  whether the UK could be made more attractive as a location for funds.

The announcement of an intention to treat non-taxpaying employees in net pay pension schemes in the same way as those who pay contributions direct and so give basic rate tax relief to both types of saver.

A continued commitment to combat perceived aggressive tax avoidance.

Unsurprisingly,  no  changes  were  announced  to  tax  rates,  amounts  of  personal allowances or the maximum ISA allowance. There was no announcement of any change to inheritance tax or even a review of the current system.

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