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Budget: 3rd March 2021

The Chancellor, Rishi Sunak, has now delivered his second budget which brought a long-term recovery plan, further covid support and an encouragement on investment.

Here are the core tax announcements: 

• SEISS grant 4 will go live from the end of April with a 5th and final grant in July. The 19/20 tax return will now be taken into consideration, as long as it was submitted by midnight on the 2nd March 2021, further details on grant 4 can be found here; 
• Working Tax Credit claimants will also be given more support for the next six months, with a one-off payment of £500.The Universal Credit uplift of £20-a-week will continue for another six months;
• Fuel duty will be frozen;
• No rise to Income tax, National Insurance or VAT;
• Personal tax threshold frozen at £12,500 but will increase next year to £12,570, but it will be kept at this level until 2026;
• The stamp duty holiday on properties worth up to £500,000 will be extended until the end of June. With a new mortgage guarantee scheme so first-time buyers only need a 5% deposit;
• The furlough scheme will be extended until the end of September;
• Planned increases in duties for spirits, wine, cider and beer will be cancelled;
• Hospitality and tourism will continue to enjoy a 5% reduced rate of VAT for a further six months;
• Corporation tax will increase to 25% in 2023;
• Inheritance tax thresholds, the pensions lifetime allowance, the annual exempt amount in capital gains tax and the VAT threshold will remain at the same levels for two years from April 2022;
• For the next two years, when companies invest, they can reduce their tax bill by 130% of their capital expenditure in a super deduction.

The Chancellor also commented on the following;

• An extra £19m for domestic violence programmes, describing domestic violence as "one of the hidden tragedies of lockdown";
• Incentive for businesses to take on new hires is confirmed with an increased payment of £3,000;
• UK Infrastructure Bank, located in Leeds;
• A further £1.6bn in funding will be provided to continue rollout of coronavirus vaccines and improve future preparedness;
• 'Help To Grow' announced means helping small businesses develop digital skills by giving them free expert training and a 50% discount on new productivity-enhancing software, worth up to £5,000 each;
• Announcement of eight freeports that are "special economic zones with different rules to make it easier and cheaper to do business";
• Visa reforms aimed at highly skilled migrants, including an unsponsored points-based visa for talent in science, research and tech, with new improved visa processes for entrepreneurs;
• Funding for the devolved administrations will also increase by £1.2bn for the Scottish government; £740m for the Welsh government and £410m for the Northern Ireland executive,
• There will also be £1bn for 45 new town deals and a £150m fund to help communities take ownership of pubs, theatres, shops and sports clubs that are at risk of loss.