On 7 January the Chancellor announced the next Budget would take place on Wednesday 11 March
This could be a significant Budget. Traditionally the first Budget of a new Parliament is when the Chancellor delivers the medicine of tax increases and/or unpopular reforms. That way the electorate has over four years to forget…
We already know a good proportion of what the Chancellor will announce as draft legislation was published eight months ago, in anticipation of the cancelled Autumn 2019 Budget. The contents will include controversial legislation to strengthen the operation of off-payroll working rules (IR35) in the private sector and tighter rules on the capital gains tax treatment of your main residence. Both take effect from 6 April 2020.
We can also expect confirmation of an increase in the starting point for National Insurance Contributions from the current £8,632 to £9,500 a year – a maximum saving of £2 a week.
The Budget unknowns include what the Chancellor might do about pensions tax relief. He already faces a growing problem with the impact of the annual allowance on NHS senior staff, which has been temporarily fixed, but only until April.