We have summarised Mr Sunak the new Chancellor’s 2020 budget for you.
- National Insurance (NI) threshold raised to £9,500 up from £8,632
- Pension taper increased to £200,000 from £110,000 – this helps pension funding restrictions
- Junior ISA annual limits increased to £9,000 from £4,368. Adult limit remains at £20,000.
- In the UK the income tax rates and allowances remain at £12,500 for the personal allowance and £50,000 the higher rate threshold
- The Capital Gains Tax (CGT) allowance has increased to £12,300 for individuals
- The Inheritance Tax (IHT) residence nil rate band increases to £175,000 taking the overall IHT allowance up to potentially £500,000 per person
- Entrepreneurs Relief lifetime allowance reduced to £1million
- Off-payroll working rules (IR35) reform still scheduled for April 2020
- Corporation tax rate to remain at 19%