Much of the 2020 Budget announcement was taken up with welcome measures to assist businesses with impact of COVID-19.
In addition to this, the two key tax changes announced, most relevant to our clients were as follows:
Reduction in the lifetime limit for entrepreneurs relief, from £10m to £1m with immediate effect. Some pre-planning undertaken from 6 April 2019, will also be caught by the restriction.
Amendment to tapered allowance for pension contributions applicable to higher earners. The pensions annual allowance tapers from £40,000 per year to £10,000 per year depending on your level of earnings. Two of the thresholds used to calculate the restriction will be raised by £90,000 such that the allowance will taper only when adjusted income exceeds £240,000.
If you would like any further information on these or any other aspect of the Budget 2020, please don’t hesitate to contact our tax partner Lesley Sutton, firstname.lastname@example.org