Further to the Chancellor’s Budget speech yesterday lunchtime we are pleased to share a copy of our Budget Summary (download your copy here).
With the UK having been adversely affected by the coronavirus (COVID-19) pandemic, Chancellor Rishi Sunak presented the 2021 Budget against a backdrop of ongoing economic hardship. There were concerns in the run up to the Budget that we may see increases in Capital Gains Tax and Corporation Tax and perhaps even the introduction of a new Wealth Tax.
The Chancellor’s Budget in reality was a cautious one, warning of the need to fix the public finances but accepting that in the short term the focus should be on protecting the economy and supporting businesses through the coming months as we strive to find a return to a greater level of normality.
Key Points Arising
- A super-deduction for companies investing in new plant and machinery
- a time extension of the temporary increase to the SDLT nil rate band for residential property (England and Northern Ireland only).
- an extension to the temporary 5% reduced rate of VAT for certain supplies
- an increased rate of corporation tax from 2023.
- a new mortgage guarantee scheme
- a further extension to the Job Retention Scheme until 30 September
- a fourth and fifth Self Employment Income Support Scheme grant now open to the newly self employed during 2019/20.
- No change to the rate of income tax, VAT or National Insurance
- Vat Registration and De-registration threshold frozen at existing levels until 1 April 2024
- Further consultations to be announced on 23 March over future proposals
As always the devil is in the detail and our attached Budget Summary provides an overview of the key announcements arising from the Chancellor’s speech, also looking beyond the headlines and offering detail on the less-publicised changes that may have an impact upon your business and your personal finances.
Additionally, throughout the Summary you will find informative comments to help you assess the effect that the proposed changes may have on you personally.
If you would like more detailed, one-to-one advice on any of the issues raised in the Chancellor’s Budget speech, please do get in touch.