We are still awaiting the date of what would have been the 2019 Budget which is likely to be early in this New Year. That Budget is likely to include some of the tax measures included in the Conservative Party election manifesto. The manifesto promised that there will be no changes to the rates of income tax, national insurance or VAT.
The manifesto stated that the corporation tax rate would remain at 19% instead of reducing to 17% on 1 April 2020 to provide an extra £6 billion for the NHS. Businesses would however benefit from a planned increase in the structures and buildings allowance from 2 per cent to 3 per cent. That allowance provides tax relief for the construction or renovation of commercial buildings.
The manifesto also announced that the national insurance threshold would be raised to £9,500 in 2020/21, from the current £8,632.
The party’s ambition was to raise the threshold to £12,500 in line with the income tax personal allowance.
As with all of our tax tips and web pages this information is necessarily summarised and of a general nature. If you would like detailed specific advice please contact us.