Briefing from No 10
Dominic Raab advises people to stay at home. Reports that the Prime Minister is in good spirits and does not require assisted breathing. Action plan is to slow the spread of the virus and we take the scientific advice. Over 213,000 have been tested. Substantial reduction in transport should lead to reduction in transmission of infection. No acceleration in cases as is hospital admissions but no steep rise. A big thank you to the NHS and clinical trials have started
Movements on the money markets
• The FTSE is climbing following a strong session in the US, as of 10:20 the index is up 2.10%
• UK Government debt (Gilt) yields remain high, with the price of the bonds refusing to fall despite a rally in the equity market
• Credit spreads (the difference in yield between corporate and Government debt) remain wide, indicating poor investor sentiment, although they are improving.
• New cases of COVID-19 appear to be topping out in France and Spain.
• There is continued optimism around Russia joining the upcoming OPEC+ meeting. A deal at this meeting would end the Saudi-Russian price war, raising the oil price.
• Brewin MI Select Funds Update Funds available exclusively to Brewin Dolphin clients, run in a Manger of Managers structure. Tolerances have been relaxed to allow more defensive managers’ portions of the fund to tick upwards as the continue to outperform. Cash reserves built up previously are being to be allocated to managers for reinvestment as they see opportunities arise.
• Discussions within the US Governments of another stimulus package, but this is far from certain yet.
Main index 11.40 am
HMRC - NEWS
There is news on VAT and if you would like to receive more information on the VAT situation please let me know. Legislation has been enacted to change reporting obligations for residential property gains chargeable on UK resident individuals, trustees and personal representatives. Also introduced is a requirement to make a payment on account of the associated capital gains tax (CGT) liability. For disposals made on or after 6 April 2020:
• a standalone tax return is required if there is a disposal of UK land on which a residential property gain accrues
• CGT is required to be computed on the reported gain in the tax return
• the return needs to be filed and the CGT paid within 30 days of the completion date of the property disposal. The new requirements do not apply if a chargeable gain does not arise, for example where the gains are covered by Private Residence Relief. Internet link: GOV.UK publications As part of its drive to encourage green motoring, the government has introduced a new emissions test, as well as new car benefit percentages. The scale of charges for working out the taxable benefit for an employee who has use of an employer provided car is computed by reference to bands of CO2 emissions multiplied by the original list price of the vehicle. The maximum charge is capped at 37% of the list price of the car. In 2017, the Government announced that cars registered from April 2020 will be taxed based on the Worldwide harmonised Light vehicles Test Procedure (WLTP). Legislation has now been passed to amend the previously planned benefit percentages for 2020/21 through to 2022/23.
• All zero emission cars will attract a reduced percentage of 0% in 2020/21 and 1% in 2021/22, before returning to the planned 2% rate in 2022/23.
• For cars registered before 6 April 2020, the current test procedure will continue to apply and there are no further changes to percentages previously set for 2020/21. These rates will be frozen at the 2020/21 level for 2021/22 and 2022/23.
• For cars first registered from 6 April 2020, most rates will reduce by 2% in 2020/21 before returning to planned rates over the following two years, increasing by 1% in 2021/22 and 1% in 2022/23. The WLTP aims to be more representative of real-world driving conditions, compared to the current test known as the New European Driving Cycle. The Government estimates that reported CO2 values may be, on average, about 2 – 25% higher under the WLTP when compared to the current test. Contact us for advice on car benefits. Internet link: GOV.UK publications
Main Index over 1 year at close source: BBC/Brewin Dolphin
As new information is coming to light the below links are updated swiftly should you need a quick reference guide.
Essential Links for assistance via Gov.uk
Self-Employment & Universal Credit
Employment & Support Allowance
Covid-19 Small Business Government Grant
Coronavirus Business Interruption Loan
Should you have any concerns or questions, we are here for our clients and will happily arrange a telephone or video call appointment to provide guidance, please either call our practice mobile 07543 368 478 or email firstname.lastname@example.org to arrange your appointment.
We are here to help you through these challenging times, so please don’t be afraid to get in touch.