Budget 2020: First Thoughts

March 11th, 2020

In the first Budget of the decade and the first one in over 50 years outside of the EU, the new Chancellor,Rishi Sunak, appeared to unveil, against the backdrop of the ever-growing Coronavirus outbreak, a series of giveaways. This was headed by a £30million investment to mitigate the impact of the virus.

In a further apparent loosening of the purse strings, initiatives were announced to boost small businesses and tackle climate change. These changes will be partly funded by a reduction in Entrepreneurs’ Relief lifetime limit from £10million to £1million and from the abandonment of the reduction of corporation tax rate from 19% to 17%.

The other main changes included:

The Chancellor said that he intended this Budget to promote a feeling of ‘security today’ and ‘prosperity tomorrow’ – our initial reaction is that he appeared to do a good job on that. However, as always, it takes some time to read through the political spin and understand more about what really changed (and when it will take effect).

We will continue to look through the finer points from today’s announcements and provide a more detailed analysis of the key changes in due course.

Source: https://www.markeltax.co.uk/industry-news/budget-2020-first-thoughts

Budget 2020 Document: https://www.gov.uk/government/publications/budget-2020-documents/budget-2020