It was the Chancellor, Rishi Sunak’s first Budget yesterday and what a time for him to have taken the reigns. The coronavirus outbreak dominated (as expected) and we saw a £30bn package unveiled to boost the economy and hopefully navigate us safely through this period. Some notable headlines included:
- Statutory sick pay for “all those who are advised to self-isolate” even if they have not displayed symptoms;
- The government will meet costs for businesses with fewer than 250 employees of providing statutory sick pay to those off work “due to coronavirus”; and
- A “temporary coronavirus business interruption loan scheme” for banks to offer loans of up to £1.2m to support SME’s.
In other news, the Corporation Tax rate was retained at 19% but the lifetime limit for gains qualifying for Entrepreneurs’ Relief was significantly reduced from £10m to £1m. My eye was also drawn to the increased R&D expenditure credit and pension thresholds. And from an eco-angle, it was interesting to see a Plastic Packaging Tax earmarked for 2022.
There’s lots more to cover so please access my summary below for greater detail and an explanation of how things may affect you and your business.
If you do have any questions whatsoever, please get in touch with either Michael Burgess or Mark Morris on 01782 279615.