The Chancellor, Rishi Sunak, presented his second Budget on Wednesday 3 March 2021. In his speech he stated his Budget ‘meets the moment with a three-part plan to protect the jobs and livelihoods of the British people’.
Main Budget proposals
Tax measures include:
- a super-deduction for companies investing in new plant and machinery
- a time extension of the temporary increase to the SDLT nil rate band for residential property in England and Northern Ireland
- an extension to the temporary 5% reduced rate of VAT for certain supplies
- a temporary increase in the carry-back period for business losses
- an increased rate of corporation tax from 2023.
Other measures include:
- new mortgage guarantee scheme
- extension to the Job Retention Scheme
- a Self-Employment Income Support Scheme fourth and fifth grant
- an extension to the business rates holiday in England (an announcement was made later in the month by the Finance Minister, Conor Murphy in respect of Northern Ireland).
Previously announced measures include:
- a cap on the amount of R&D tax credit paid to a loss-making small or medium-sized enterprise
- new rules apply to off-payroll working payments made for services provided on or after 6 April 2021.
Our summary of the Budget provides an overview of the key announcements arising from the Chancellor’s speech, with insights and comments to help you assess the effect that the proposed changes might have on you, your business and your family wealth.
If you would like more detailed advice on any of the issues raised in the Chancellor’s speech, please contact us.
CLICK HERE to download your copy of our Budget summary.