April 2020 Budget Highlights

Statutory sick pay (regarding Covid-19 coronavirus)

Following the Budget speech to Parliament on March 11th 2020, the Chancellor outlined measures to help businesses deal with the impact of Covid-19, including a pledge to meet the cost of statutory sick pay for businesses with up to 250 employees for 14 days. “Statutory sick pay will also be available for all those who are advised to self-isolate – even if they haven’t yet presented with symptoms,” he said “And rather than having to go to the Doctors you will soon be able to obtain a sick note by contacting 111.”

Business rates

The Chancellor also announced that business rates would be abolished this year for retail, leisure or hospitality businesses with a rateable value below £51,000.

Personal tax

The Chancellor announced that National Insurance thresholds at which employees and the self-employed start paying National Insurance contributions will increase to £9,500 from April 2020. This is an increase from the current level of £8,632 and will save the average person in work just over £100 a year.  

Pensions

The lifetime allowance, the maximum amount someone can accrue in a registered pension scheme in a tax-efficient manner over their lifetime, will increase in line with CPI for 2020-21, rising to £1,073,100.

The Chancellor also said that the complicated way that the pension annual allowance works for high earners will change. The “threshold income” for the annual allowance will now be increased by £90,000 to £200,000.

Savings

The adult ISA annual subscription limit for 2020-21 will remain unchanged at £20,000. However, Junior ISAs and Child Trust Funds will be increased from £4,368 to £9,000.

Property tax

Non-resident buyers of homes in Britain will have to pay an additional two per cent stamp duty from 1 April 2021. This is designed to help control house price inflation and to support UK residents to get onto and move up the housing ladder.