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/ 14 Apr 2020

Individual Tax Allowances and Rates From 6th April 2020

There is so much going on out there in the big wide world that the simple everyday updates may not have filtered into your consciousness.  I’ve set out the following as a heads up for the everyday taxes we face for the 2020/2021 tax year from 6 April 2020.

Personal Tax

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)

Property Taxes

  • 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.

Individual Tax Allowance - Hanne & Co's Alexandra Cunnington looks at tax allowance changes from 6 April 2020

Alexandra Cunnington is a Solicitor in Hanne & Co’s Private Client Team

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