Budget 2020 a first look

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The major features of this budget are:

Changes to National Insurance will be introduced with the threshold increased to £9,500 and the Employment Allowance to increase to m£4,000.

The rate of Corporation Tax is to be frozen at 19% as previously announced

The tax credit for expenditure on research and development is to increase from 12% to 13% as previously announced.

The lifetime limit for Entrepreneurs’ Relief is to be reduced , with immediate effect, from £10m to £1m. The proposed rules include measures to counter planning some taxpayers may have taken in anticipation of the rerstriction.

The tapering pension allowance will be changed, benefiting high earners on incomes up to £300,000. Those earnings over this level will face increased restriction with the allowance falling to £4,000.

Non-UK resident individuals will be liable to a 2% Stamp Duty Land Tax surcharge on UK property purchases.

From the 6th April 2020, no VAT will be levied on women’s sanitary products and from 1st December 2020 on digital publications.

There will be no increases to alcohol and fuel duties.

A tax on plastic packaging is to be introduced from 2022.

We are also told that measures to tackle aggressive tax avoidance and evasion will be strengthened.

What to do next.

As ever the devil will be in the detail and we will let you know as more becomes available, so watch this space. For further information on this and other topics contact us at 01332-369999 or through the contact page of our website www.milestone-solutions.co.uk

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