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.