The Chancellor of the Exchequer, Rishi Sunak presented the latest UK Spring Budget on Wednesday 3 March 2021.
Our Budget Hub contains insights and publications to help you digest the latest announcements and guide you through the financial measures that affect you.
Key points from the 2021 Spring Budget
Our key points infographic highlights the top 10 announcements in the following areas:
- Investment into innovation
- Corporation tax
- VAT cut
- Covid-19 support
- Furlough scheme extension
- Introduction of Freeports
- Stamp Duty
- Skills & Training
- Retail, Leisure & Hospitality
- Arts & Culture
The Chancellor had a difficult task in this Spring Budget: to indicate how he might balance the Government’s books in the future, while still having to pay out huge sums to support the economy. He said that he would continue to provide ‘whatever it takes’ to protect businesses and jobs during the present crisis, while being honest about the need to ‘fix the public finances’ and setting out his plans to build the future economy.
This Summary document covers the key tax changes announced in the Chancellor’s speech and includes tables of the main rates and allowances. At the back of the Summary you will find a calendar of the tax year with important deadline dates shown.
We recommend that you review your financial plans regularly as some aspects of the Budget will not be implemented until later dates.Read our Budget summary
Spring Budget reactions
Our team have provided their initial reactions to the budget announcements.
The Budget was relatively light on VAT changes, however the Chancellor did announce some welcome news for the hospitality sector. The Chancellor also announced there would be a freeze to the current VAT registration threshold of £85,000 until 31 March 2024. This means the current deregistration threshold of £83,000 will also remain in place until the same time.Dan Hobbs, Tax Partner
Agriculture and Vineyards
For the Agriculture and Vineyard sectors there will be some benefit from the extension of existing support measures from the furlough scheme, rates holidays and grants through to September 2021, with some modifications. The chancellor also announced that all alcohol duties will again be frozen for a further year with no extra tax on spirits, wine, cider or beer. New bank recovery loans were announced to help with growth plans out of COVID.John Billings, Senior Partner, Head of Agriculture and Vineyards
On healthcare there was a welcome boost to the vaccination program which should ensure that the general economy recovers more quickly. Unfortunately, there still does not appear to be a plan for social care. It’s now long overdue.Jeff Huggins, Head of Healthcare
With the electric vehicle (EV) market already heading in the right direction, the Chancellor hasn’t dealt any significant changes for the motor retail sector, but there are some positives to take from this Budget. Namely, the extension of the CJRS which will allow dealers to better plan beyond the end of April, the increased capital allowance incentives on qualifying plant and machinery, and more flexible loss carry-backs. These measures will help cash flow and support dealers in becoming ‘EV ready’ which will require investment.Chris Reeves, Head of Motor Retail
Whilst it was good news that the Chancellor announced extended support for the self-employed and has captured 600,000 more people, he has done nothing for those directors whose business have been hit hard by COVID and paid themselves historically through dividends. The Chairman of the Treasury Select Committee will be raising this with him again next week.Jeff Huggins, Head of Independent Professionals
This is obviously a very hard time for the retail sector, but some good news was included in the Budget. This includes an extension to the business rates holiday as well as up to £6000 restart grant per premises for non-essential retailers. In addition, the furlough scheme has now been extended to September, as well as the SEISS for self employed traders.Mark McDowell, Head of Retail
Get in touch
If you would like more detailed one-to-one advice on any of the issues raised in the Budget, please fill in the form and a member of our team will be in touch.