2020 Budget Analysis

In the first Budget in more than 16 months, and the first since the December general election, the new Chancellor, Rishi Sunak, set out a bold vision for a transformed UK. Against a backdrop of a health epidemic, a falling stock market and a drop today in the Bank of England base rate (to its equal lowest of 0.25%), it was a Budget that committed to significant investment paid for with a growing national overdraft. Some of the key measures included:

  • The reduction in the lifetime limit for Entrepreneurs’ relief from £10m to £1m
  • Increasing the Structural Buildings Allowance to 3% and the R&D Expenditure Credit to 13%
  • The launch of a consultation to assess the attractiveness of the UK’s funds regime
  • Taking advantage of Brexit to remove the tampon tax
  • A range of initiatives to support business during the potential coronavirus epidemic

We’re pleased to deliver our initial response to the key tax implications from today’s announcements below.

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