Spring Budget 2021 Highlights

    Daniel McAllister
    3rd March 2021
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    The Chancellor Rishi Sunak preseted his 2021 Spring Budget on Wednesday 3 March 2021. 

    Announcing a focus on recovery from Coronavirus and protection of jobs the main announcements were:

    Covid Support for businesses and employers

    • Furlough scheme extended to 30 September, with employer contributions of 10% in July and 20% in August / September
    • SEISS extended for a 5th grant and opened to newly self employed but now a turnover test will be applied
    • Apprenticeship grant doubled to £3,000 for new hires between 1 April and 30 September
    • Business Rates Holiday extended to 30 June for eligible businesses and up to 66% relief for rest of the year
    • VAT cut extended for tourism and hospitality, then increases to 12.5% from 1 October and then back to 20% next April
    • Stamp duty holiday extended until 30 September then £250,000 threshold until September
    • Restart grants of £6,000 for retail and £18,000 for hospitality, leisure and personal care and gym businesses

    Businesses Tax

    • Corporation tax rate increases to 25% from April 2023. Small companies rate if profits under £50,000 at 19% and tapered up to profits of £250k
    • Corporation tax losses of up to £2million can be carried back for 3 years (up from 1 year)
    • Super deduction of 130% of expenditure on new machinery

    Individuals

    • Income tax personal allowance frozen at £12,570 from April 2021 to 2026
    • Higher rate thresholds also frozen at £50,270 until 2026
    • Thresholds for IHT, pension lifetime allowance, Capital Gains Annual Exemption and VAT registration also frozen until 2026
    • Mortgage guarantee scheme announced allowing 5% deposits

    Internet link:  GOV.UK 2021 Budget

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