Budget Key Points

The Chancellor announced his budget for 2021 earlier today. Below is a quick summary of the key points from his announcement.

Taxation
  • No changes to rates of income tax, national insurance or VAT
  • Personal income tax allowance is being frozen at £12,570 from April 2022 to 2026 and the Higher rate income tax threshold is being frozen at £50,270 from 2022 to 2026
  • Corporation tax on company profits to rise from 19% to 25% in April 2023. The rate will be kept at 19% for approximately 1.5million smaller companies with profits of less than £50,000.
  • Stamp duty holiday on house purchases in England and Northern Ireland extended to June, with no tax liability on sales of less than £500,000
  • No changes to inheritance tax or lifetime pension allowance or capital gains tax allowances

 

Covid-19 support
  • The Furlough scheme is to be extended until the end of September, with the Government continuing to paying 80% of employees' wages for hours they cannot work. Employers will be asked to contribute 10% in July and 20% in August and September
  • Support for the self-employed will also be extended until September. Access to grants for the self-employed will be widen so 600,000 more self-employed people will be eligible.
  • £20 uplift in Universal Credit worth £1,000 a year to be extended for another six months
  • Working Tax Credit claimants will get £500 one-off payment

 

Business
  • VAT rate for hospitality firms to be maintained at reduced 5% rate until September
  • Interim 12.5% rate to apply for the following six months
  • Business rates holiday for firms in England to continue until June with 75% discount after that
  • £5bn in Restart grants for shops and other businesses forced to close
  • £6,000 per premises for non-essential outlets due to re-open in April and £18,000 for gyms, personal care providers and other hospitality and leisure businesses