Much of the focus was on the short-term measures needed to deal with the challenges UK faces as a result of the coronavirus pandemic. However, the Chancellor also announced some longer-term measures. It was a Budget of two halves: security today and prosperity tomorrow, as the Chancellor put it.
The increase in the taper thresholds for the annual allowances should mean that many fewer higher paid people will be hit by a reduced annual allowance. The impact on doctors and other NHS staff has been widely reported but people in business have also been affected. However, the very small increase in the lifetime allowance will continue to catch many of those building pension assets.
The reduction of entrepreneurs’ relief to £1 million of gain was well trailed, and for a time abolition seemed a possibility. But the more than doubling of the annual limit for Junior ISAs to £9,000 was a pleasant surprise.
Smaller businesses especially will welcome the increase in the NIC employment allowance to £4,000. Publishers should be very pleased by the decision to make electronic publications zero-rated for VAT.
The coming tax year will see important changes to the benefit tax rules for company cars. 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.
If there are any issues in this Budget that you would like to discuss in more detail, or if there is anything we can help you with, do get in touch on 0114 266 4432 or [email protected]. We will be pleased to hear from you.