Budget 2020 – Key Points


The Spring Budget 2020  was largely overshadowed by reaction to the economic impact of coronavirus and there was no attempt at major tax reform.  You can read about the measures for corona virus here 

Our key points are below:

Personal Tax

As expected the personal allowance will remain at £12,500 in the 2020/21 tax year

There are no changes to the £5,000 savings rate band, £2,000 dividend allowance or the £1,000 savings allowance

Capital Gains Tax allowance will increase by £300 to £12,300 from April 2020

National Insurance

The threshold above which National Insurance becomes payable will be raised from £8,632 to £9,500

Corporation Tax

The rate of Corporation Tax will remain at 19% for 2020/21

Entrepreneurs’ Relief

This will be restricted by reducing the Lifetime Limit from £10 million to £1 million

Investments & Property

ISAs:  From 6 April 2020 the annual subscription limit for ISAs remains at £20,000 but the limit for Junior ISAs and Child Trust Funds will be increased from £4,368 to £9,000

Investment Bonds:  Amendments will be made to the legislation on Top-slicing Relief to clarify how allowances and reliefs can be set against life insurance policy gains. This measure will apply to all relevant gains occurring on or after 11 March 2020

Tax Advantaged Investments:  There are no changes to SEIS, EIS, VCT or IHT Business Relief investments

Stamp duty:  From April 2021 there will be a 2% surcharge for non-UK residents purchasing UK residential property


From 6 April 2020 the adjusted income and threshold income limits will be increased by £90,000 to £240,000 and £200,000 respectively.  Individuals whose threshold income is below £200,000 will not be affected by tapering.  Their annual allowance will only start to be tapered when this £200,000 threshold is breached and their adjusted income exceeds £240,000

The minimum level to which the annual allowance can taper down will reduce from £10,000 to £4,000. This means that all those with adjusted income of £312,000 or over will have an annual allowance of £4,000

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