Chancellor Rishi Sunak delivered the 2021 Budget, which extended several Coronavirus support schemes and outlined plans for the country’s post-pandemic recovery.
There were few surprises, but good news for some with the extension of the furlough scheme and business rates’ holiday past the proposed end dates of the Government’s coronavirus ‘roadmap’. However for some sectors the challenges of the pandemic are far from over with the increase to 25% for corporation tax, although business owners thinking about selling their businesses have been spared, for the time being, from any increase in Capital Gains Tax or changes to Business Asset Disposal Relief.
Here are some of the key points you need to know from the 2021 Budget:
Commercial
Employment
Furlough scheme to be extended until the end of September 2021, with the Government continuing to pay 80% of employees wages. Employers will be asked to contribute 10% in July and 20% in August and September.
Self Employment Income Support scheme will be extended until September 2021, with 600,000 more people who filed a tax return in 2019-20 now able to claim for the first time.
Minimum wage to increase to £8.91 an hour from April.
For any further help or advice please contact our employment law team.
Business
Corporation tax on company profits above £250,000 to rise from 19% to 25% in April 2023, with rates to be kept at 19% for smaller companies with profits of less than £50,000.
Tax break for firms, and business rates holiday to continue until June, and then with a 75% discount.
Restart grant of £5bn for shops and other businesses in England forced to close
For any further help or advice please contact our company and commercial team.
Personal
Wealth Management
Tax-free personal allowance to be frozen at £12,570 from April 2021 levels to 2026.
Higher rate income tax threshold to be frozen at £50,270 from April 2021 levels to 2026.
Inheritance tax thresholds, pensions life time allowances and annual capital gains tax exemptions to be frozen at 2020-2021 levels until 2025-26.
For any further help or advice please contact our wealth management team.
Property
Stamp duty holiday on house sales in England and Northern Ireland for properties under £500,000 will be extended until June 2021.
New mortgage guarantee scheme will enable all UK homebuyers secure a mortgage up to £600,000 with a 5% deposit.
For any further help or advice please contact our residential property team.
Family
Domestic violence and abuse funding of £19m, funding network of respite rooms for homeless women.
For any further help or advice please contact our family team.
For the full 2021 Budget visit the Governments website.
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