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Budget 2021 Summary


Individuals

  • Personal allowance increase to £12,570 from 6th April 2021 but then frozen until 5th April 2026. Higher rate threshold increased to £50,270 from 6th April 2021 but then frozen until 5th April 2026.

  • Stamp Duty Land Tax nil rate band of £500,000 extended through to 30th June 2021, then reduced to £250,000 from 1st July 2021 to 30th September 2021 and £125,000 from 1st October 2021 onwards.

  • Inheritance tax nil rate band, Pensions lifetime allowance, CGT annual exempt amount frozen until 05.04.2026.

Consultations on IHT and CGT to be published 23rd March 2021 so there may be further developments here.

Employers

  • Coronavirus Job Retention Scheme extended in its current form until 30th September 2021 with employers to contribute 10% in July and 20% in August and September.

  • Off-payroll working changes coming in on 6th April 2021 with some changes to help prevent abuse.

  • The one-off payment for employers in England who hire apprentices of any age will be increased to £3,000.

  • Benefit in kind easements relating to COVID-19 will be extended for 2021/22 covering cost of antigen tests and reimbursement of expenses for the cost of home office equipment.

Businesses

  • Corporation Tax unchanged at 19% until 31st March 2023 but increases to 23% from 1st April 2023. This changes comes with a small profits rate of 19% for profits up to £50,000 tapering to 25% for profits of £250,000 or more.

  • Temporary 130% and 50% first year allowances for new investments in Plant & Machinery and Special Rate assets made between 1st April 2021 and 31st March 2023.

  • Business rate holiday for retail, hospitality and leisure extended until 30th June 2021 with a maximum of 2/3 discount until 31st March 2022.

  • Reduced 5% VAT rate for hospitality, holiday accommodation and attractions extended until 30th September 2021 and then 12.5% through to 31st March 2022.

  • Consultations commenced to improve the competitiveness of the UK’s R&D tax credit schemes.

Additional comments

  • Hospitality and leisure businesses (including personal care and gyms) will receive grants of up to £18,000.

  • Non-essential retail businesses to receive grants of up to £6,000 per premises.

  • Government is setting up a new Taxpayer Protection Tax force of over 1,250 HMRC staff focussed on investigating fraudulent claims under the CJRS and SEISS.

  • Amendment of the SEISS to capture previously excluded self-employed to access the 4th and 5th grants.

  • Contactless payment limit to increase form £45 to £100 later this year.

CONTACT US FOR A CHAT

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Louise Rogers

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John Matthews

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