HFMC Wealth Budget Summary 2020

1 11 March 2020 l BUDGET © Copyright 11 March 2020. All rights reserved. This summary has been prepared very rapidly and is for general information only. The proposals are in any event subject to amendment before the Finance Act. You are recommended to seek competent professional advice before taking any action on the basis of the contents of this publication. CONTENTS Budget highlights 1 Introduction 2 Personal taxation 3 Pensions, savings and investments 6 Capital taxes 8 Business taxes 9 Value added tax 12 Tax avoidance and evasion 14 National insurance contributions 16 BUDGET HIGHLIGHTS ■ The Chancellor announced a £12 billion “temporary, timely and targeted” coronavirus stimulus on top of an £18 billion increase in general public spending, but tax measures were relatively few. ■ The pension annual allowance thresholds will each be increased by £90,000 from 2020/21, removing taper as an issue for most people with incomes under £200,000. ■ The capital gains tax entrepreneurs’ relief lifetime limit has been cut from £10 million to £1 million with immediate effect. ■ The annual investment limit for junior ISAs and child trust funds will be increased to £9,000 from 2020/21. ■ The national insurance contributions employment allowance will increase from £3,000 to £4,000 from April 2020. ■ There will be a review of the taxation of funds to make the UK more attractive for fund management. It will also consider the VAT treatment of fund management fees. ■ From April 2021, only zero emission vehicles will get 100% first year allowances. Cars with emissions up to 50g/km will have an 18% a year writing down allowance; for higher emitters the allowance will be 6% a year. ■ From April 2022, red diesel (and rebated biofuels) will only be available to users for agriculture, rail and non- commercial heating. ■ E-publications (e-books, e-newspapers, e-magazines and academic e-journals) will be VAT zero-rated from 1 December 2020 .