The delayed Budget date has now been set for 11th March 2020, having been postponed thanks to the December 2019 General Election. The Chancellor, Rishi Sunak, is set to announce tax measures set out in the Conservative Party manifesto and confirm that previously consulted changes will be put in place.
Read on for a round-up of expectations from experts around the web.
Boris Johnson stated in the Conservative Party manifesto that Corporation Tax would remain at 19% to provide £6 billion in funding for the NHS. The maintenance of this rate goes against the previous suggestion of a reduction to 17% on April 1st. However, it looks like businesses will benefit from an increase in the Structures and Building Allowance from 2% to 3%, providing tax relief on renovation or construction of commercial buildings.
Another promise from the Conservative Party manifesto is an increase in the threshold for National Insurance contributions from £8,632 to £9,500 for 2020-21. Eventually, the party has shared its ambition to bring the threshold to £12,500 in line with the Personal Allowance for Income Tax.
The Office of Tax Simplification (OTS) suggested that the conditions for BPR could be improved by bringing the rules in line with the definition of a trading company for Capital Gains Tax. Presently, the relief is 100% on the transfer of shares in an unquoted company. If the change is made, more transfers of shares could be liable for Inheritance Tax.
The Conservative Party suggested, pre-election, that Entrepreneurs’ Relief could be reviewed. It may be reformed or abolished in this Budget. Continuing changes to Capital Gains Tax has seen more non-resident disposals falling under UK CGT and a shorter deadline for reporting the gains on property sales expected to take effect from April.
With thanks to the experts at Ellacotts and UHY Hacker Young for their insights.
