Spring Budget 2020: Personal
11th March 2020
Tapered annual allowance threshold raised
In 2020/21, the two thresholds at which the tapered annual allowance applies will both increase by £90,000.
This applies to individuals with a threshold income of more than £200,000 and an adjusted income above £240,000.
For every £2 of income above £200,000, a high earner's allowance will reduce by £1.
The Chancellor said this would support medical professionals, taking around 98% of consultants and 96% of GPs out of the taper altogether.
However, the minimum level the annual pensions allowance can fall to will be reduced from £10,000 to £4,000.
Alcohol and fuel duties frozen
All alcohol duties, including those for spirits, beer, cider and wine, will be frozen for 2020/21.
Fuel duty will also be frozen for the tenth year in a row.
National Insurance Contributions threshold to increase
From 6 April 2020, the threshold for paying National Insurance contributions will rise from £8,632 to £9,500.
The Treasury said this will save the typical employee around £104, and the average self-employed person around £78.
Stamp duty surcharge of 2% for non-UK residents
People who are not resident in the UK and purchase residential property in England and Northern Ireland will be liable for a 2% stamp duty land tax surcharge from 1 April 2021.
Support for self-employed affected by coronavirus
The self-employed, and other individuals not eligible for statutory sick pay, will be able to claim employment and support allowance from day one of their illness, rather than day eight.
This was announced alongside changes to statutory sick pay, which is paid to employees, and measures aimed at supporting small businesses.
Talk to us for more information on the Spring Budget.