The Chancellor Rishi Sunak presented his second Budget on Wednesday 3 March 2021. In his speech he stated his Budget ‘meets the moment with a three-part plan to protect the jobs and livelihoods of the British people’.
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.
Our Budget Summary provides an overview of the key announcements arising from the Chancellor’s speech. However, it also looks beyond the headlines and offers details on the less-publicised changes that are most likely to 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.
Main budget proposals
Tax measures include:
- 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 in England and Northern Ireland
- an extension to the temporary 5% reduced rate of VAT for certain supplies in the hospitality sector
- a temporary increase in the carry-back period for business losses
- an increased rate of corporation tax from 2023
Other measures include:
- a new mortgage guarantee scheme
- extension to the Job Retention Scheme
- a Self-Employment Income Support Scheme fourth and fifth grant
- SEISS now available to ‘new’ self-employed who were previously excluded
- an extension to the business rates holiday in England
Previously announced measures include:
- a cap on the amount of R&D tax credit paid to a loss-making small or medium-sized enterprise
- new rules apply to off-payroll working payments made for services provided on or after 6 April 2021
Click on the links below for further information
Personal Tax – Income tax, savings and reliefs
Business Tax – Coronavirus measures, corporation tax, R & D and business rates
Employment Taxes – Coronavirus support, National Insurance and off-payroll working
Capital Taxes – Capital gains tax and inheritance tax
Other Matters – Various matters, including land and buildings taxes and the contactless payment card limit
Some Budget proposals may be subject to amendment in the 2021 Finance Act. You should contact us before taking any action as a result of the contents of this summary.
Watch our video
Need help? Get in touch
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 with our team. Call us on 01904 655202, or email our tax team:
Nigel Atkinson: nigel.atkinson@hghyork.co.uk
Paul Morris: paul.morris@hghyork.co.uk
Robert Salenius: robert.salenius@hghyork.co.uk
Claire Hodsman: claire.hodsman@hghyork.co.uk
