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March 5, 2021

Budget 2021 – our 60 second(ish) round-up.

The Chancellor has delivered his eagerly anticipated second Budget – but despite his new super deduction was it actually as groundbreaking as people proclaimed it to be?

At James Hair & Co, we know you’re busy people so here is your 60sec round-up of the Chancellor’s key announcements;

Corporation Tax

The main rate has been increased from 19% to 25% but it won’t take effect for 2 years.

The starting rate of 19% will apply to companies with profits up to £50,000, with a taping rate for companies with profits between £50,000 and £250,000.

Business Taxation

A new super-deduction of 130% for capital expenditure has been introduced for companies with effect from April and the £1million annual investment allowance has been extended for another year.

Various other business support measures were announced as well as extensions to the furlough scheme and SEISS scheme.

The 5% VAT rate on hospitality has been extended until September, with a 12.5% rate applying thereafter until 31st March 2022.

Personal Allowance

Personal allowances and tax plans will be frozen for five years. The personal allowance will now be £12,570 and higher rate tax will kick in at £50,270 until 5th April 2026. For Scottish taxpayers, the higher rate tax of 41% starts after £43,662.

SDLT

The SDLT holiday has been extended for house-buyers in England and Wales. However, this does not apply in Scotland.

Capital Gains Tax

Of course, the biggest announcement wasn’t actually in the budget – there has been no announced changes to capital gains tax (at least this year). Whether this is just a stay of execution remains to be seen.

For further information for what this means for your business or personal planning, please contact info@jameshair.co.uk