Budget 2020 was dominated by the coronavirus as Chancellor Rishi Sunak earmarked £30 billion to help tackle the economic impact of the COVID-19 crisis.
The budget this year was preceded by the Bank of England cutting interest rates from 0.75% to 0.25% and this, plus much of the budget, was aimed at helping to tackle the impact of coronavirus on the economy.
Whilst not mentioned in the Chancellor’s speech, Budget 2020 contained changes that will directly affect savers and investors. The Junior Isa limit more than doubled, from £4,368 to £9,000 in the new tax year, and whilst the adult Isa allowance remains at £20,000 in the 2020-2021 tax year, it is scheduled to increase to £25,000 in 2024/5 tax year.
On the pensions front, pension tax relief was left alone, whilst the lifetime pension allowance has been raised to £1.073 million. With a nod to doctors, the “tapered pension allowance” is being raised by £90,000 to £240,000.
Somewhat surprisingly, despite being widely tipped, there was no mention of inheritance tax in the budget, despite calls for IHT rules to be simplified. Similarly, there was no mention of social care in the Budget speech, despite the UK’s ageing population, a shortage of care provision and widespread problems in the funding of long-term care.
For a more detailed summary please download our Budget Guide 2020 below.
Obviously, with markets continuing to tumble across the globe, you may want to review or discuss your investment and financial plans. If so, please do not hesitate to contact us.