Now, for tomorrow

The Spring Budget sets out the latest financial measures for individuals and businesses as the UK transitions through the next phase of the pandemic and onto the road to recovery.

This Budget involves a three part plan:

  1. Continue doing whatever it takes to protect jobs and households
  2. Begin fixing public finances
  3. Building our future economy

Read below for our latest insights, opinion and advice following the Chancellor of the Exchequer, Rishi Sunak’s, Spring 2021 Budget.

Budget 2021 Video: The Big Picture

.A general overview of the Budget announcements focusing on the outcomes around Government spending, the economy and revenues.

 

10 key points from Budget 2021

We have summarised the main announcements in one easy to digest infographic.

 

 

Budget 2021 Video: Tax Changes

This short video looks at the Covid support schemes, corporation tax, super-deductions and freeports. Also included in the debate were matters not covered in the budget and a look at what might be next?

Increase to Corporation Tax

It has today been announced that from 1 April 2023 the main rate of corporation tax will be increased from 19% to 25%. The highest corporation tax rate the UK has seen since 2011.

Tax rates 2021/22

Download the updated tax rates card for 2021/22.

 

 

Carry back of trading losses

A company or business that has suffered trading losses in an accounting period ending within the two years from 1 April 2020 to 31 March 2022 will be allowed to carry trading losses back, and offset them against historic profits made in the previous three years.

Plant and machinery super deduction for companies

In addition to the annual investment allowance being frozen at £1,000,000 for spend on plant and machinery incurred to 31 December 2021, the Government announced a new super deduction. 

Giving businesses a kick start

A package of measures aimed at helping businesses get back on their feet, including recovery loans, restart grants and help for apprenticeships.

 

Stamp duty holiday extension

Rishi Sunak has extended the Stamp Duty ‘holiday’ to avoid risking damaging the housing market. The stamp duty holiday will now be extended in its current form for three months until 30 June 2021.

 

Furlough scheme and SEISS

The furlough scheme has been extended to 30 September 2021.  There will also be a fourth and fifth grant available to the self-employed providing much needed support.

 

 

Individuals face tax rise via the back door

There are small increases in the personal allowance and basic rate thresholds for the new tax year to 5 April 2022, but after this they remain frozen until 5 April 2026. This results in an annual tax saving of £14 for a basic rate taxpayer, £68 if you pay higher rate tax.

Freeports to help UK to regenerate as a global exporting power

A welcome announcement regarding eight new Freeports in England in regeneration regions.

 

 

Support measures for the hospitality and leisure sector

The chancellor announced several measures to help the hospitality and leisure sector. These include an extension to the temporary reduced VAT rate, a reduced VAT rate from October 2021 to March 2022 and an extension to the business rates holiday.

Help to grow

The Government announced a new £520m ‘Help to Grow’ scheme to help businesses grow amidst the economic impact from the Covid-19 pandemic.

 

 

Budget 2021: Shot in the arm for UK economy

The Budget will provide a much-needed boost for the UK economy through a range of measures aimed at getting firms in all sectors back on their feet quickly and promoting economic recovery through business growth.

 

Budget Analysis Events

On 4 March 2021 we held budget analysis events across the day. Our webinar recordings are now available for the Liverpool/ Manchester event and the North West Business Leaders event.

Great Conversations

Hear the latest views from our experts on topics such as corporation tax, travel and tourism, furlough, VAT and business support packages.