The key budget changes that might affect your business are set out below. If you need further details please contact me.
The CT rate is set at 19% for 2020/2021 and 2021/2022.
The CT tax credit for Research and Development increases from 12% to 13% from 1/4/20
Corporate tax relief for intangible assets is extended to assets which existed prior to 2002 in respect of assets purchased from 1/7/20. Previously such assets were excluded.
Structures and buildings allowance is increased from 2% pa to 3% effective from 1/4/20 for companies and 6/4/20 for individuals and partnerships.
Employment Allowance for Employers NIC is increased from £3000 to £4000 from 6/4/20.
From April 2021 Cars will have to be zero emissions in order to qualify for 100% FYA capital allowance. Currently they can qualify at an emissions level of 50gm/km or less. Such cars will fall into the main rate pool from 2021/22.
With immediate effect the Lifetime Allowance for Entrepreneurs Relief is reduced to £1m (formerly £10m). There will be anti avoidance measures targeting attempted forestalling which may have taken place.
The CGT annual exemption is increased to £12300 (£6150 for trustees).
Car and Van fuel benefit charges are increased in line with the CPI
For Inheritance Tax the Residence Nil Rate Band is increased to £175000 as part of the transitional introduction of this relief. Estates over £2m may only qualify for this relief in part or not at all depending on their size.
Registration and deregistration limits for VAT will remain unchanged for 2 years from 1/4/20.
Temporary measures designed to assist small businesses during the Corona Virus outbreak include:
- Suspension of business rates in the coming financial year for any business with a rateable value of £51000 or less
- A £3000 grant for businesses which qualify for small business rate relief or rural rate relief
- Funding of Statutory Sick Pay for up to 14 days for businesses with less than 250 employees