Entrepreneur’s Relief (now called Business Asset Disposal Relief)

The lifetime limit has been reduced from £10m to £1m for all disposals on or after 11 March 2020, taking into account earlier disposals. The reduction also applies to certain disposals entered into but not completed before 11 March 2020 as well as share reorganisations and exchanges. See the technical note issued on 19 March 2020.

Structures and Buildings Allowance

Applies to businesses who incur expenditure on newly constructed or renovated non-residential buildings and structures. From April 2020, the tax relief increases to 3% (from 2%) per year.

Business Rates

A new commission has been set up to report in time for the Autumn Budget which will undertake a full review of the current system, with proposals for the medium to long term.

Goodwill and other intangibles

From July 2020, intangibles acquired from related parties now qualifies for tax relief. This will apply in particular to goodwill on incorporation.


Tax relief on pension contributions is limited to the annual allowance. Pension contributions in excess of the annual allowance are subject to a tax charge. The tax charge is calculated by taking the pension contributions in excess of the annual allowance and multiplying by the taxpayer’s marginal rate of tax. The tax charge is payable via self assessment. There is provision for the pension scheme to pay in certain situations.

The annual allowance is tapered down to a minimum where income exceeds certain limits. Those limits have been increased from April 2020. Threshold income is now £200,000 (from £110,000) and adjusted income is now £240,000 (from £150,000), allowing more taxpayers greater tax relief. The minimum allowance has been reduced from £10,000 to £4,000.

Employment allowance

Certain employers benefit from an employment allowance, which is a deduction from the Employer National Insurance liability. This allowance has been increased from £3,000 to £4,000 from April 2020. The allowance applies only to employers who have an Employer NIC bill of less than £100,000 in the prior year.

Note that this, as before, does not apply to one-man companies.

E-publications and VAT

From 1 December 2020, e-publications will be zero-rated for VAT, bringing it into line with the VAT treatment on physical publications.

Junior ISAs

The maximum that can put into a Junior ISA has increased from £4,368 to £9,000.