Monday 6 April 2020 will see a range of tax changes come into effect with the start of the 2020/21 tax year.
Some of these changes have the potential to have considerable implications for your tax bill, depending upon your specific circumstances.
Here is a selection of the most significant changes:
The key change in relation to Income Tax is that there will not be a change, unless the Chancellor changes course at the Budget on 11 March.
The personal allowance and the basic rate limit will not change for the first time in several years.
National Insurance Contributions (NICs)
While personal allowances for Income Tax are not set to change in April, the NICs threshold is set to rise by more than 10 per cent to £9,500 a year, for both the employed and self-employed. The average employee is expected to pay around £104 less as a consequence in 2020/21.
Capital Gains Tax (CGT):
Some of the biggest changes coming into effect in April relate to CGT, with extensive changes to Private Residence Relief and Lettings Relief set to come into effect.
Landlords will be most affected by the changes. Until now, any period during which a property has been a main residence has been discounted from the calculation of a taxable gain for the purposes of CGT.
This means that in circumstances where a property had been a main residence for half the time it was owned, CGT would only apply to half the gain.
Furthermore, from April, Lettings Relief will only apply where the landlord lived at the property with their tenant at some point during their ownership.
Until now, Lettings Relief of up to £40,000 has been available to people who let a property that is or has been their main residence, with twice that available to married or civil partnered couples.
Of course, between now and April, the Chancellor will deliver his first Budget, which may see further changes announced.