Budget 2020

Budget 2020

A Budget delivered against the backdrop of the global outbreak of COVID-19 and a new Conservative Government keen to fulfil its manifesto pledges.

Discover the key Budget announcements and RSM’s insights on the potential impact to individuals and businesses.

Budget 2020 | Overview of the announcements

Budget 2020

Tax facts

Your easy-to-use comprehensive guide to all the tax rates, facts and figures you need to know.

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Budget 2020

Overview of corporate tax changes

The Budget had no significant new corporation tax announcements.

It did, however, confirm that the corporation tax rate will remain at 19 per cent from April 2020, whilst providing for some small giveaways in the areas of innovation relief and capital allowances. There was also confirmation that the UK’s Digital Services Tax will be introduced from April 2020.

There are also changes in the how taxpayers interact with HMRC - both through disclosure of uncertain tax positions for large companies and in the increased availability of time to pay arrangements as a result of the coronavirus outbreak. 

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Overview of private client tax changes

Relatively few changes to personal taxes were announced. 

The most significant change was to Entrepreneurs’ Relief (ER). The relief has been significantly reduced to £1m for gains arising on or after 11 March 2020.

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Budget 2020
Budget 2020

Overview of VAT changes

While the extension of the VAT zero-rate for digital publications on 1 December 2020 will attract most of the headlines, there is also good news for those buying and selling goods internationally as the postponed VAT accounting rules have been confirmed to take effect from 1 January 2021. 

There are also a raft of consultations taking place to ensure that the Government capitalises on the flexibility it will enjoy next year once EU restrictions on the VAT regime are lifted.

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Overview of employment tax changes

There are plenty of employment related matters for employers to contend with post the announcement of the 2020 Budget 2020 with COVID-19 and off-payroll top of the agenda.

The big news was the change to statutory sick pay and confirmation that the off-payroll/IR35 rules will change from this April. Many of the other items covered had already been announced.

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Budget 2020