As with all Budget announcements, the devil is in the detail and therefore we will see further information and commentary emerging over the next few days. However, based on the Chancellor’s speech, here are the key announcements from the Budget for our clients.
The core of our client base is owner-managed business and high wealth individuals. For those groups, there were a few important Budget measures:
- Support for the business costs of coronavirus – relief will be given for businesses with fewer than 250 employees based on statutory sick pay costs for a two week period
- Maintaining the rate of corporation tax – corporation tax will be chargeable at 19%
- Increase in the Employment Allowance – the allowance will increase from £3,000 to £4,000
- Reduction in annual pension contribution “tapering” – the threshold for tapering will increase from £110,000 to £200,000
- Increase in Research and Development Expenditure Credit (RDEC) – the rate of credit will increase from 12% to 13%
- Business rate relief in retail, leisure and hospitality sectors – for property with a rateable value of less than £51,000
- Reduction in Entrepreneurs’ Relief for Capital Gains – the gains upon which Entrepreneurs’ Relief may be claimed is reduced from £10m to £1m
- Removal of red diesel relief – relief will be removed across various sectors, but with protection for farming and other industries
The Chancellor suggested that Entrepreneurs’ Relief was not actually an incentive to, or being significantly accessed by, entrepreneurs. I would tend to disagree. We will be looking at the measures closely and also at how we can best protect our clients’ wealth and ability to access and maximise the relief.
There will be lots more detail to come in the next few days, some of which can be found here. In the meantime, we are focusing on safe working practices to protect staff and clients from the impact of coronavirus in order to provide an uninterrupted service.
Want to know more? Call us on 01392 260310 or email firstname.lastname@example.org