UNW's summary of the key announcements from UK Chancellor Rishi Sunak's first Budget
Published on March 12, 2020
Find the key announcements from the UK Chancellor Rishi Sunak's first Budget from UNW (Newcastle) HERE
Chancellor Rishi Sunak announced the Budget yesterday – and it had many firsts in it, even before he had said anything. It was his first Budget after only a few weeks in the role, the first Budget under Prime Minister Boris Johnson, and therefore the first of this Parliament, and the first after the UK formally left the EU (although we are currently in the transition period that is due to end on 31 December 2020, unless extended).
Under the shadow of Coronavirus, the first part of his speech was a package of measures worth £30 billion to support individuals, the NHS, and businesses through this period. He also announced a major programme of new infrastructure investment, which it appears will be largely met by increased borrowing, especially as the Office for Budget Responsibility has downgraded its growth forecasts – even before the level of the impact of the Coronavirus started to become clearer.
There were relatively few tax measures in the Budget, some of which had already been widely trailed. Corporation Tax stays at 19%, rather than being reduced to 17% from April 2020; the lifetime limit for Entrepreneurs’ Relief is back to its level when it was introduced (but other capital gains continue to be taxed at 20% mostly, not higher Income Tax rates). Higher rate tax relief for pension contributions remains, and there was a major increase in the taper thresholds (but a reduction in the minimum annual allowance, although this only affects those with adjusted income over £300,000).
As usual, as well as changes announced yesterday, our summary includes measures previously announced, but only coming into effect from April 2020 or later.
A summary of the Budget 2020 is now available below or via the link HERE. We hope the summary provides a valuable guide to the significant announcements.Download UNW UK BUDGET Summary