Personal Tax
The amount that an individual can earn before paying income tax will remain the same at £12,500 and the threshold for higher rate income tax (40%) remains at £50,000
The Dividend Allowance for 2020/21 remains at £2,000.
National Minimum Wage
From 1 April 2020, the National Minimum Wages changes to the following amounts, dependent upon the employee’s age:
Apprentice - £4.15 (previously £3.90)
Under 18 - £4.55 (previously £4.35)
18-20 - £6.45 (previously £6.15)
21-24 - £8.20 (previously £7.70)
25+ - £8.72 (previously £8.21)
Capital Gains Tax
The annual exemption for Capital Gains Tax remain at £12,000 for the 2020/21 tax year. **Update - the March 2020 Budget on 11 March 2020 increased the CGT Annual Allowance to £12,300.
Pension Relief
The annual allowance for payments into personal pensions remains at £40,000 per tax year, and the lifetime allowance for pension savings increases to £1,073,000 on 6 April (previously £1,055,000).
**Update - the tapered annual allowance rules will now only begin to apply for those who have an income above £240,000 – the £200,000 allowance plus the £40,000 you can save into a pension, an increase from £150,000. However, the minimum annual allowance has been reduced to £4,000 from £10,000, but only affects those with an income over £300,000.
Student Loans
From 6 April 2020, the earnings threshold for Plan 1 loans will increase to £19,390 (previously £18,935) and Plan 2 loans will increase to £26,575 (previously £25,725).
Corporation Tax
The rate of Corporation Tax for all businesses remains at 19%, with plans to reduce this rate to 17% delayed (originally due to come into effect in April 2020