Rishi Sunak announces the raising of the Taper threshold.
With doctors and the higher earners in mind tapered thresholds are to be raised by £90,000 and removing anyone with income below £200,000.
Apparently 98% of NHS consultants and 96% of GPs will now escape the taper.
Minimum annual allowance will be reduced to £4,000, which Sunak says will only impact those with incomes above £300,000. Altogether this constitutes a £2bn commitment by the Government.
There are no other significant changes and the lifetime allowance will increase in line with CPI for 2020-21, rising to £1,073,100.
Changes to entrepreneurs’ relief
Sunak advises that he will not fully abolish entrepreneurs’ relief but he will undertake a "sensible reform", reducing the lifetime limit from £10m to £1m.
These reforms will save £6bn over the next five years and the money will go back to businesses through other measures.
The changes to entrepreneurs’ relief will increase the amount of tax paid by businesses sold at a profit of over £1million. This should see greater opportunity for advisers and accountants to work together to extract value from these businesses prior to sale, for example through increased employer pension provision.
Other News
The Budget announces that the amount families can save into a JISA or CTF will be more than doubled in 2020-21, increasing from £4,368 to £9,000.