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Chancellor Rishi Sunak presented the UK's Budget 2020 on 11 March 2020.

Tax highlights and key measures are as follows.

Income Tax

Rates & Allowances

From 6 April 2020

See Rates & Allowances

Individual Savings Account (ISA) investment limits

From 6 April 2020

See ISA Allowances

National Insurance Contributions (NICs)

From 6 April 2020

See National Insurance rates

New Tax Reliefs

Tax exemptions for bursary payments to care leavers

Tax exemptions for payments made under the Windrush Compensation Scheme 

Tax exemptions for payments made under the Troubles Permanent Disablement Payment Scheme

Top Slicing Relief (TSR)

From 11 March 2020

See Top slicing relief: how you slice it

Pensions

From 6 April 2020 the Lifetime Allowance increases from £1,055,000 to £1,073,100.

See Pensions

Making Tax Digital for Income Tax

See Making Tax Digital for Income Tax timeline

Capital Gains Tax

Rates & Allowances

From 6 April 2020

See Capital Gains Tax rates

Entrepreneurs' Relief

See Entrepreneurs' Relief

Inheritance Tax

Rates & Allowances

See IHT Rates & Allowances

IHT: tax treatment for Kindertransport Fund Payments

Employers

Statutory Sick Pay (SSP) and the Covid-19 virus

Employers NIC allowance

From 6 April 2020

See Employer's NIC Allowance

NICs holiday for employers of veterans

From April 2022

Flat rate tax deduction for home working

From 6 April 2020

See subscriber's guide: Employees: what expenses can I claim for home working?

Tax treatment of welfare counselling provided by employers

From 6 April 2020

See subscriber's guide: Medical benefits and health checks

Car benefits

From 6 April 2020

See Company cars

CO2 emissions tables

Vans

From 6 April 2020

See Van benefits.

Zero-rating zero-emission vans from the van benefit charge

From 6 April 2021

See Van Benefit Charge (VBC) Zero emission vans

Loan Charge

See Disguised Remuneration Zone

Partnerships

Clarifying the treatment of Limited Liability Partnership (LLP) returns

Companies

Tax rates

See Corporation Tax rates

Research & Development

From 1 April 2020

Preventing abuse of the R&D tax relief for small and medium enterprises (SME)

Extension of R&D relief

See R&D zone

Intangible fixed assets: relief for pre-Finance Act 2002 assets

See Goodwill and the intangibles regime

Large company digital services tax

From 1 April 2020, as previously announced:

See subscriber's guide Digital Services tax

Corporate Loss restriction

For accounting periods ending on or after 1 April 2020

See Losses: trading and other losses

Deferral of Corporation Tax Payments 

Non-Resident Property Owning Companies 

See Non-resident landlord scheme

Capital Allowances

Structures & Buildings Allowance

From 11 March 2020, with retrospective effect.

See Structures & Buildings Allowance

Enterprise Zones

See Enterprise Zones: plant and machinery allowances

Vehicles

Capital allowance carbon dioxide emissions thresholds for business cars, goods vehicles and equipment for gas refuelling stations

From April 2021

Land & Property

Annual Tax on Enveloped Dwellings (ATED)

From April 2020

See ATED

Non-UK resident Stamp Duty Land Tax (SDLT) surcharge

From 1 April 2021

Stamp Duty Land Tax and Stamp Duty Reserve tax

Transfers of unlisted securities

VAT

Construction Industry Scheme (CIS) domestic reverse charge

See CIS VAT Domestic Reverse Charge

VAT: applying a zero rate to e-publications

From 1 December 2020

Call-off stock

This legislation will have a retrospective element, applying to goods that are removed from a Member State or the UK on or after 1 January 2020.

VAT: amendment to the Agricultural Flat Rate Scheme (AFRS)

From 1 January 2021

The introduction of new entry and exit rules for the VAT AFRS. The following changes will be implemented:

See Flat rate scheme: farmers

Introduction of a zero rate of VAT for women’s sanitary products

From 1 January 2021

S4C Section 33 VAT Act review

Postponed VAT accounting

From 1 January 2021

Administration 

HMRC Automation

Protecting your taxes in insolvency

From 1 December 2020

Raising standards in the market for tax advice

Devolved Taxes

Tax treatment of certain Scottish social security benefits

See Devolved Taxes: Scotland

Other measures

Plastic Packaging tax

From April 2022

Red diesel

End of tax relief from 2022

Nature for forest fund

Landfill tax

Material sent to landfillRates from 1 April 2019Rates from 1 April 2020
Standard rated £91.35/tonne £94.15/tonne
Lower rated £2.90/tonne £94.15/tonne

 

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