Gillingham01747823147-SturminsterNewton01258423300-SheptonMallet01749345895 office@andpal.co.uk

Spring Budget 2020: Business

11th March 2020

Entrepreneurs' relief

Entrepreneurs' relief lives for another tax year after being under threat prior to the Spring Budget, but a key change will come in for 2020/21.

The rules allow business owners of two years or more to pay capital gains tax at 10%, instead of 20%.

The lifetime limit on for the 10% tax rate is reduced from £10m to £1m for disposals made on or after 11 March 2020.

Business rates

Firms in the retail, leisure or hospitality sectors with a rateable value of £51,000 or less will pay no business rates whatsoever in 2020/21.

That amounts to nearly half of all business properties in England being exempt from business rates from April.

A wider review of the business rates system in England will be undertaken ahead of the Budget in the autumn.

Employment allowance

The employment allowance can reduce employers' (secondary) class 1 national insurance bills.

Currently, a £3,000 allowance is available until the £3,000 has gone or the tax year ends, whichever is sooner.

This allowance will rise by 25% to £4,000 from April.

Research and development

The research and development expenditure credit (RDEC) will rise from 12% to 13% - a tax cut worth around £2,400 on a typical R&D claim, according to the Government.

Talk to us for more information on the Spring Budget.

SageXero 

icaew chartered accountants             Quickbooks

Credit and Debit Card Acceptance for small business with Paya Card Processing Services