On the expenditure side, infrastructure and the NHS seem to be the two major areas for investment. HS2 and other rail improvements in the North are likely to be beneficiaries as will carbon capture and other climate related projects, for example, improving the energy efficiency of homes, schools and hospitals.
During the last election, the government disclosed that it will not be increasing any of the major taxes and has recently published details of an increase in the NIC threshold, to £9,500.
Corporation tax was due to reduce to 17% (from the present 19%) from April 2020. However, Boris Johnson did state that this intended reduction would be dropped, and the rate maintained at 19%.
There is speculation that higher rate tax relief will be trimmed for contributions into private pension funds from April 2020. This does add weight to the planning option to review top-up payments this month if you pay Income Tax at the 40% or 45% rates.
A cross-party group of MPs has called for a reduction in the rate of Inheritance Tax, from 40% to 10%, together with a reduction in many of the Inheritance Tax allowances and reliefs.
Business rates are another target for relief in an attempt to support beleaguered High Street businesses. Additional support has already been announced for retailers and pubs.
In a fresh demonstration of the government’s support for communities up and down the country, a new Pubs Relief will be introduced in April, with £1,000 being taken off the business rates bills of small pubs who qualify.
As many as 18,000 pubs are expected to benefit from the discount.
The relief will come on top of an extended retail discount which smaller pubs are also eligible to claim. Those able to claim both reliefs will benefit from a possible £13,500 off their annual bills.
From April this year:
Small shops and cafes will see their bills halved as the retail discount, currently a third off, is extended to 50% music venues and cinemas will become eligible for the retail discount a £1,500 discount for local newspapers office space will be extended for a further five years
Regional variations may apply.
Check with your local rating authority to see how this announcement will affect your rates bill in 2020-21.
Meanwhile, back at number 11 Downing Street, Rishi Sunak will be burning the midnight oil to prepare himself for his dispatch-box presentation on 11 March. We will be reporting on the outcome of his disclosures in due course.
If you would like advice on how it could affect you give the team at Culley Lifford Hall a ring on 01543 401184.
Member since: 10th July 2012
I am passionate about 'Buying Local' and supporting our local businesses to 'keep the pound' in town, to help grow our economy here in Lichfield.
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