Budget 2021

Here are the main provisions

Income Tax

Personal Allowances to increase to £12,570 and the basic rate threshold to £50,270
Rates and allowances will remain the same until 2026

Corporation Tax

Main rate to increase to 25% in 2023 with a small profits rate of 19% for profits up to £50k and taper relief up to £250k
Loss relief to be carried back 3 years

Capital Gains Tax

Annual allowances remain unchanged until 2025/26 – no mention of the anticipated rate hike!


Furlough Scheme

The scheme is to be extended to 30th Sep 21 with no change to employees – Employers will have to contribute top ups of 10% in July and 20% in August and September

Self Employed

Grants 4 and 5 announced covering Feb-Apr 21 of 80% of average profits; 5- May to Jul. Self Employed individuals who have filed a return by midnight of 2nd March will eligible for the grants


VAT

5% reduced rate for the hospitality sector to continue until 30th Jun then a staged return to the full rate in April 2022 by increasing the rate to 12.5% for the period 01/10/2021 to 31/03/2022
Registration limit of £85k to remain unchanged until 2024


Stamp Duty

£500k nil rate band to continue until 30th June then £250k to 30th September returning to the original £125k on 1st October

National Living Wages

This is to rise to £8.91 in April
£3k grants for new apprenticeship

Business Rates Holiday

Extended to the end of Jun for eligible businesses reduced to 66% relief to March 2022

 

Investments