Autumn Budget 2021 Summary
An age of optimism?
Throughout the COVID pandemic, the government has paid out unprecedented amounts of support to employers, businesses, and self-employed people to protect the economy from collapsing. And at the same time, incurring all the costs of supporting the health system through its greatest crisis. We have been waiting for the bill to arrive – the tax increases that will pay for it all.
Instead, Chancellor Rishi Sunak spent most of his speech spreading more money to every corner of the United Kingdom. He spoke of freezing duty on fuel and alcohol, cutting business rates for small businesses, supporting families and building houses. Although he started by saying ‘we have challenging months ahead’, he moved rapidly on to what he called ‘an economy fit for a new age of optimism’.
The details and what they mean for you
When the Chancellor sits down, the Government publishes everything on the internet – proposals he hasn’t mentioned; the detail of things he only touched on; and the tables of financial estimates that show what is significant and what is marginal. Our Budget Summary puts together the most important points and explains how they affect businesses and individuals.Read our full Autumn Budget Summary
Significant announcements include:
- 30-day reporting and payment deadline for CGT on UK residential property extended to 60 days for transactions completing on or after 27 October 2021
- 100% Annual Investment Allowance continues at £1m until 31 March 2023, instead of reducing to £200,000 on 1 January 2022
- Confirmation of 1.25% increases in National Insurance Contributions (NIC) and dividend tax rates from 6 April 2022, as well as increases in most NIC thresholds
- Residential Property Developer Tax to be introduced from 1 April 2022 at 4% on profits over £25 million
- Reform of basis period rules for unincorporated business and LLPs from 2023/24
- Temporary reliefs for Business Rates for small businesses in 2022/23, with longer-term reform of the system and reliefs for expenditure to be introduced in April 2023
- New late submission and payment penalty regimes to be introduced for VAT (for accounting periods beginning on or after 1 April 2022)
- Making Tax Digital for Income Tax Self Assessment to be introduced from 2024/25, along with a new penalty regime for late submission and payment
Our dedicated Budget Hub includes our Budget Summary as well as comments from our team.Visit the Budget Hub
We will review the new proposals to ensure we offer our clients the best advice to help them remain as tax efficient as possible. And our colleagues at Carpenter Box Financial Advisers are always on hand to help manage investments and pensions.
If you would like more detailed one-to-one advice on any of the issues raised in the Budget, please get in touch or give us a call on 01903 234094.