• Jane Wu LLB ACA

New Tax Year: A recap of the key tax changes



  • Income Tax: The personal Allowance remains unchanged at £12,500

  • Income Tax: The pensions lifetime allowance rises from £1,055,000 to £1,073,000. The threshold for the tapered annual allowance rises from £150,000 to £240,000 for the tax year 2020-21.

  • National Insurance: The class 1 NIC threshold increased to £9,500 from £8,632 - bringing welcome cuts to tax for workers.

  • IR35 / Off-Payroll Working: In response to the coronavirus crisis, the government has delayed the further roll out until April 2021.

  • Inheritance Tax (IHT): The residence nil rate band increases to £175,000 so make it easier to pass on the main home to direct descendants. The IHT nil rate band of £325,000 is unchanged

  • Mortgage Tax Relief: No longer available for buy-to-let landlords. But, landlords will receive a tax-credit, based on 20% of their mortgage interest payments.

  • Capital Gains Tax (CGT): The principle private residence exemption reduces from 18 to 9 months which means a hike in CGT on sale for landlords selling a property which has at some point been their only or main home.

  • Capital Gains Tax (CGT): Entrepreneurs Relief lifetime limit significantly reduced from £10m to £1m per person

  • Corporation Tax: Unchanged at 19%


24 views

Quality you can trust

  • Jane's Accounting Services
  • Jane's Accounting Services
  • Jane's Accounting Services

©2020 by Janes Accounting Services Limited. Finchampstead, Wokingham.

xero-bronze-partner-logo-RGB.png
xero-payroll-certified-badge.png
1-badge-online-large.png