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The Business Group Budget Forum

Expert analysis

The Chancellor has delivered his Budget 2021 speech.

Rishi's recovery plan: Despite a lot of media coverage about potential capital gains tax rate increases and the introduction of wealth taxes, the Chancellor focussed on the economic recovery, rather than hitting an already beleaguered nation with a huge swathe of tax rises. Read more here

Corporation Tax: As widely expected, corporation tax rates will rise but just for bigger companies and not until April 2023. Read more here

COVID-19 support package: The Chancellor announced a package of measures to continue to support the economy through the final stages of the COVID-19 pandemic. Read more here

Stamp duty land tax (SDLT): A temporary measure was already in force for residential property, meaning that individuals acquiring their only residential property would pay no SDLT on purchases of £500,000 or less. It has been announced that these measures will continue until 30 June 2021. Read more here

Income tax and national insurance: The Chancellor was able to, at least politically, maintain the Conservative promise of not increasing income tax, by increasing the personal allowance from £12,500 to £12,570 from 6 April 2021, and also increase the rate at which individuals pay 40% tax to £50,270. Read more here

Freeports: The Chancellor announced the establishing of eight ‘Freeports’ in the UK. The basic concept is that a small region of the country is carved out and designated Freeport status which gives certain relaxations in taxation and customs duties as well as funding to encourage business growth. Read more here

Consultation on R&D tax reliefs: There have been a number of consultations on the R&D tax incentives recently; responses to the most recent one, concerning a potential reframing of expenditure qualifying for these tax incentives, were also published today. Read more here

Enterprise management incentives - call for evidence: In the 2021 budget the Government has announced that it is making a ’Call for Evidence’ to access the effectiveness of the scheme and understand whether the EMI scheme could be extended to include more companies. Read more here

Business asset disposal relief (BADR): No changes to BADR were announced by the Chancellor in the 2021 Budget and therefore where an individual sells a trading business owned for at least two years, or a share in a partnership, then BADR will be available. Read more here

VAT update: The VAT registration threshold is maintained at £85,000 for two years from 1 April 2022. The deregistration threshold will remain at £83,000 for the same period. Read more here

 

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