11 March 2020
Daniel Lyons, head of tax policy at Deloitte, comments on the Budget:
“Today’s Budget marked a confident start from the new Chancellor and, understandably, the key focus was the provision of support to the economy and public services in the current climate.
“Aside from the postponement of the decrease in corporation tax, the two biggest tax rises are the partial abolition of tax relief on red diesel for sectors other than rail, home heating and agriculture, and the announcement of the reduction in the lifetime limit for entrepreneurs’ relief. These will raise £1.6bn and £1.8bn respectively per annum in 2024/25. By contrast the “Blue Ocean” plastic packaging tax will only raise £220m a year in 2024/25.
“As expected, the Chancellor’s biggest giveaway came from the increase in the primary threshold and lower profits limit for National Insurance contributions, which will see a cost to the Exchequer of £2.4bn in 2024/25.”
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