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
- 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
- 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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