Personal Allowance and Income Tax thresholds
The Personal Allowance for the 2020/21 tax year is not expected to change and will remain at £12,500 – this is tax-free and is applied throughout the UK.
National Living Wage
The national living wage hourly rate for over-25s will increase by 50p to £8.72.
Annual Pension Allowance
The pension annual allowance thresholds will each be increased by £90,000 from 2020/21, removing taper as an issue for most people with incomes under £200,000.
Capital Gain Tax
The capital gains tax entrepreneurs’ relief lifetime limit has been cut from £10 million to £1 million with immediate effect.
The annual investment limit for junior ISAs and child trust funds will be increased to £9,000 from 2020/21.
The national insurance contributions employment allowance will increase from ￡3,000 to ￡4,000 from April 2020
First Year Allowance
From April 2021, only zero emission vehicles will get 100% first year allowances. Cars with emissions up to 50g/km will have an 18% a year writing down allowance; for higher emitters the allowance will be 6% a year.
Non-UK resident stamp duty land tax (SDLT) surcharge
A 2% SDLT surcharge will be introduced from 1 April 2021 for non-UK residents purchasing residential property in England and Northern Ireland.
Corporation tax rate
The rate of corporation tax will remain at 19% and will not fall to 17% in 2020, as had been planned.
Research and development (R&D)
The rate of R&D expenditure credit will increase from 12% to 13% from 1 April 2020.
The taxable turnover threshold for registration for value added tax (VAT) will remain at £85,000 until April 2022. The deregistration threshold will stay at £83,000 for the same period.