Mostly remain the same as last year. Some increases to employee NIC thresholds for employed and self-employed mean that employees will be £104 better off and self-employed will be £78 better off.
- Annual exempt amount for Capital Gains Tax for individuals and personal representatives has risen to £12,300 (from £12k)
- The annual exempt amount for Capital Gains Tax for most trustees has risen to £6,150 (from £6k)
- Personal ISA limit will remain unchanged at £20k
- Junior ISA limit will increase to £9k
- Child trust funds will also increase to £9k
- Flat rate deduction for home working arrangements increases to £6 per week
The thresholds used to calculate the tapered annual allowance for workers are being reduced. Those with an annual taxable income of below £240k are not affected.
Inheritance Tax Allowances
Mostly remain the same but the residence nil rate band is increasing to £175,000 (from £150k)
- The Annual Tax on Enveloped Dwellings (‘ATED’) will rise by 1.7% from 1 April 2020 for chargeable amounts for the period 2020 to 2021. This is strictly speaking a tax on companies and not individuals, but as the individuals behind the companies are affected I have added this here.
- In real terms this means that for properties:
£500k ≥ £1m the annual fee is now £3,700
£1m ≥ £2m the annual fee is now £7,500
£2m ≥ £5m the annual fee is now £25,200
£5m ≥ £10m the annual fee is now £58,850
£10m ≥ £20m the annual fee is now £118,050
£20m ≥ the annual fee is now £236,250
- Non-UK residents should be warned that all purchases of UK property purchases completing after 1 April 2021 will be liable for an additional SDLT surcharge at 2%. Where contracts exchanged before 11 March 2020 but complete substantially after 1 April 2021 then there are transitional provisions which will apply.
Entrepreneurs’ relief has been reduced to £1m (from £10m) for disposals made on or after 11 March 2020.
Alexandra Cunnington is a Solicitor in Hanne & Co’s Private Client Team