Inheritance tax (IHT)
There were no changes to inheritance tax rates.
The standard nil rate band remains at £325,000 and the he residence nil rate band at £175,000. These bands will be frozen up until 5 April 2026.
There is a tapered withdrawal (at a rate of rate of £1 for every £2) of the additional nil-rate band for estates with a net value of more than £2m. It is also available when a person downsizes or ceases to own a home on or after 8 July 2015 and assets of an equivalent value, up to the value of the additional nil-rate band, are passed on death to direct descendants.
Any unused nil rate bands can be transferred to a surviving spouse or civil partner
Stamp Duty Land Tax (SDLT)
As announced in Budget 2020, 2% surcharge will be applied for all non-UK residents buying residential property in England and Northern Ireland from 1 April 2021.
The stamp duty holiday was extended, as widely expected. The £500,000 nil rate band will remain until 30 June 2021. There will then be a £250,000 nil rate band until 30 September 2021, at which the nil rate band will return to the usual £125,000.
Help to Grow Schemes
The Chancellor announced two Help to Grow schemes: Management and Digital. The schemes will commence in the Autumn, but businesses can register interest now.
The Management scheme will will offer a new executive development programme with mentoring and peer learning, and government will contribute 90% of the cost.
The Digital scheme will help small businesses develop digital skills by giving them free expert training and a 50% discount on new productivity-enhancing software, worth up to £5,000 each.
The schemes are only available to businesses employing between 5 and 249 employees that have been trading for more than 12 months.
Further details can be found here.
The Chancellor announced the creation of 8 Freeports in England.
Freeports are special economic zones with different rules to make it easier and cheaper to do business. They’re well-established internationally, but we’re taking a unique approach.
Freeports will have:
- Simpler planning;
- Infrastructure funding;
- Cheaper customs – with favourable tariffs, VAT or duties;
- Lower taxes – with tax breaks to encourage construction, private investment and job creation.
The English Freeports will be at:
- East Midlands Airport.
- Felixstowe and Harwich.
- Liverpool City Region.
The government will work with the Scottish, Welsh and Northern Irish administrations with regard to Freeports throughout the rest of the UK.