Rishi Sunak presented the Spring 2021 Budget on Wednesday 3 March 2021.
This blog focuses on the direct and indirect tax measures announced, as well as the announcements made previously which affect the 2021-22 tax year and beyond for English tax payers.
It concentrates on the issues likely to affect you, your family and your business.
If you have any questions please do not hesitate to contact me for advice.
Main Budget proposals from the Budget
- The main corporation tax rate will increase to 25% with effect from 1 April 2023. There will be a small companies rate of 19% for businesses with profits of less than £50,000 with marginal rates up to £250,000.
- Many bands and thresholds will be frozen until 5 April 2026, including: the personal allowance (£12,570), the 20% tax band (£50,270 for most tax payers), the inheritance tax thresholds (£325,000 standard and £175,000 residence), the capital gains tax exempt amount (£12,300 for individuals) and the pension lifetime allowance (£1,073,100).
- The VAT registration threshold will remain at £85,000 until at least April 2024.
- The stamp duty holiday was extended to 30 June 2021, and there will be a £250,000 interim nil rate band between 1 July and 30 September 2021, reverting to the pre-holiday threshold of £125,000 from 1 October 2021.
- Extensions to the coronavirus job retention scheme and the self employed income support scheme were announced.
- Restart grants will be available to retail and hospitality and other sectors with delayed reopening.
- There will be a new recovery loan scheme with government guarantees of 80%.