Newly appointed Chancellor of the Exchequer, Rishi Sunak, presented his first Budget on Wednesday in challenging times.
This was a spending and investment Budget which also included measures aiming to mitigate the damaging impact of a Coronavirus outbreak on the UK economy. Following the bold statement by Boris Johnson last week ‘to give the NHS what it needs,’ the Chancellor was honour bound to fulfil the Government’s promise.
To help bolster NHS resources, the threshold at which pension contributions are taxed has been raised for high earning doctors and consultants. To support small businesses, those with fewer than 250 employees will be eligible for a refund of up to 14 days SSP (Statutory Sick Pay) if staff are affected by Coronavirus.
Entrepreneurs’ Relief is restricted to the first £1m (previously £10m) on disposals with immediate effect. Anti-avoidance legislation has also been introduced to prevent anyone from capitalising on the relief without selling their business.
The annual amount that higher earners can invest in their pension has been reduced from £10k to £4k. There was much speculation that pension tax relief would be reduced to a rate of 20% for everyone, but that has been left untouched, for the time being.
We will need to review where the money will come from, the Chancellor hinted the annual £13bn we are not sending to the EU will help pay for his spending spree.
Further detail will be unveiled over the coming weeks, but for a summary of the announcement please view or download Alliotts Budget Summary.
If you have any questions regarding the budget please contact your usual Alliotts partner or get in touch via our enquiry form.