BUDGET 3 MARCH 2021 – KEY POINTS

BUDGET 3 MARCH 2021 – KEY POINTS

On the 3rd of March 2021, The Chancellor delivered the budget.  A summary of the main points are as follows:

COVID-19 Support

  • Extension of the Coronavirus Job Support Scheme to September 2021
  • Self Employment Income Support scheme extended to September 2021, with 600,000 more people able to claim for the first time.
  • An extension to the temporary cut in Stamp Duty Land Tax in England and Northern Ireland until September
  • A new mortgage guarantee scheme will enable all UK homebuyers secure a mortgage up to £600,000 with a 5% deposit.
  • Restart Grants – a one off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England.
  • New Recovery Loan Scheme to make available loans between £25,001 and £10 million, and asset and invoice finance between £1,000 and £10 million, to help businesses of all sizes through the next stage of recovery.
  • Extension of the Film & TV Production Restart scheme in the UK, with an additional £300 million to support theatres, museums and other cultural organisations in England through the Culture Recovery Fund.
  • Extension to the VAT cut to 5% for hospitality, accommodation and attractions across the UK until the end of September, followed by a 12.5% rate for a further six months until 31 March 2022.
  • 750,000 eligible businesses in the retail, hospitality and leisure sectors in England will benefit from business rates relief.
  • Small and medium-sized employers in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the Government.
  • Extension of the loss carry back rules worth up to £760,000 per company.
  • Minimum wage to increase to £8.91 an hour from April

Corporation Tax

  • From April 2023 Corporation Tax rates will rise to from 19% to 25% but only those businesses with profits of more than £250,000. Business with profits below £50,000 will continue to attract Corporation Tax at 19% and those between £50,000-250,000 will be tapered.

 

Personal Tax

  • No changes to rates of income tax or national insurance
  • Tax-free personal allowance to be frozen at £12,570 from April 2021 levels to 2026
  • Higher rate income tax threshold to be frozen at £50,270 from April 2021 levels to 2026
  • Inheritance tax thresholds, pensions life time allowances and annual capital gains tax exemptions to be frozen at 2020-2021 levels until 2025-26

 

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