Tax Newsletter | February 2020

UK Budget

The new Chancellor Rishi Sunak has confirmed that the Budget will go ahead on 11 March 2020. Although there haven’t been many specific details in the Government’s manifesto, they have been hinting at radical changes. So, what might these be, and should you be looking to do any tax planning before the budget?

National Insurance

It is expected that the threshold for national insurance will be raised in the Budget giving a tax saving to many.

Pensions

Mr Javid proposed a restriction to the current pension relief rules for those earning more than £50,000. While Mr Sunak may not include this in his Budget, if you are earning over £50,000 and are considering a pension contribution before the tax year-end on 5 April, it may be wise to go ahead before 11 March.

Capital gains tax

There has been talk that there would be changes to Entrepreneur’s relief that may even see it completely scrapped. For further analysis please see our article here.

IHT 

There has been huge speculation about changes to the longstanding IHT rules which could see the rate cut from 40% to 10%, however, almost all reliefs could be abolished. If you are considering making any gifts you may wish to complete these before the budget. Further information can be found here, or please contact us at IHT@hlca.co.uk to discuss your options.

Corporation Tax 

During the election, Boris stated that the 2% drop to 17%, which was due to take effect from April 2020, will no longer happen. 


Scottish Budget

The Scottish budget was announced this month by Kate Forbes following the resignation of Derek Mackay. The budget saw little change to the income tax regime with only inflationary increases to the starter and basic rate bands. In addition, we saw a new 2% rate of LBTT on non-residential leases over £2m. For a detailed look at the proposed spending see our full analysis here


Inheritance Tax Videos

In light of the proposed changes to the Inheritance Tax rules the IHT team have been looking at the current rules and what can be done before a possible change. As a part of this, we have produced a series of videos which look at ways of limiting your liability to both Income & Inheritance tax and planning for the future.


Get in touch

To discuss any of the issues highlighted within this newsletter, or any other matter you require our help with, please contact us by using the form below.