A few snippets from the first Budget on 11th March 2020 from recently appointed Chancellor, Rishi Sunak. A quiet one generally with all changes effective 6th April 2020:-
Pension Lifetime Allowance
This will increase in line with the Consumer Price Index of 1.7% making the new Lifetime Allowance £1,073,100, an increase of £18,100.
Capital Gains Tax (CGT) allowance
The annual exemption will rise from the current £12,000 to £12,300, again reflecting the CPI.
Individual Savings Accounts (ISAs)
The annual allowance will remain at £20,000 although the amount allowed to be invested in Junior ISAs will more than double from £4,368 to £9,000.
Although widely reported beforehand that this would go completely, it hasn’t. However, the lifetime limit has been reduced from £10m to £1m for qualifying disposals. As a reminder, this relief means qualifying gains are taxed at just 10%. According to the Government, this change ensures that over 80% of those using the relief will be unaffected.
Tapered Annual Allowance
The Threshold and Adjusted Income limits are to rise from £110,000 and £150,000 respectively to £200,000 and £240,000, an increase of £90,000 for both. If these limits are breached, the Annual Allowance will be tapered down from £40,000 to £4,000 (currently £10,000). These changes are designed to placate higher earners, notably those in the medical profession, many of whom have been trapped by the taper.
National Insurance (NI)
The primary level will be increased to £9,500 from £8,632.
Obviously, there is also the huge war chest that is being opened by the Government to try to deal with the Coronavirus which is causing such mayhem to stockmarkets worldwide and which, as yet, shows no signs of abating.