12th March 2020

Aegon: Budget 2020 – read our analysis

The focus of today’s Budget was very much on reducing the economic impact of the coronavirus, however the new Chancellor delivered plenty of other announcements which could impact on your clients, including:

• a change to pension tax relief allowances – the two tapered annual allowance thresholds will rise by £90,000. Welcome news for those high earners working in the NHS and elsewhere;
• an intention to consult on the net pay tax relief issue to provide a solution for lower earners contributing to workplace pension schemes set up on this basis;
• an increase in the lifetime allowance. In 2020/21 the allowance will increase in line with CPI, rising to £1,073,100 - slightly higher than expected;
• a reduction in the lifetime limit for gains qualifying for entrepreneur’s relief – reducing from £10,000,000 to £1,000,000, and
• a surprise increase to the Junior ISA limit – increasing from £4,638 to £9,000.

Read our Analysis

Budget