AUTUMN 2021 BUDGET

KEY POINTS

• Changes to Research and Development tax reliefs to extend the relief for cloud computing and data costs and to limit the relief to UK activity only.
• Extension of the annual investment allowance of £1m to March 2023.
• Reform of business rates to be a fairer, more timely system with revaluations every 3 years from 2023 with an additional business rates improvement relief with no additional business rates due for 12 months.
• The retail, hospitality and leisure sector to benefit from a 50% business rates discount up to £110k pa.
• Reform of the alcohol duties regime to be a more simple and fairer system including the cancellation of the planned increase in duty for scotch whisky, wine, beer and cider.
• The planned increase in fuel duty was cancelled.
• An increase of 1.25 percentage points to national insurance and dividend tax rates from April 2022 to April 2023. Thereafter the 1.25% will be a separate health and social care levy and national insurance rates will return to their old rates.
• Increase to the national living wage to £9.50 from 1 April 2022.
• Corporation tax to increase to 25% from 1 April 2023.
• Doubling of tax reliefs for the cultural sector – museums, galleries, orchestras and theatres.
• Investment to ensure those with low income get on the green housing ladder by building 160,000 homes on unused or derelict land.
• Universal credit taper for each £1 earned will be cut from 63p to 55p.
• Investment in skills by increasing the spend for each pupil, tripling the spend for those with special educational needs and introducing the “Multiply” scheme to give adults numeracy training.
• An increase from 30 days to 60 days to complete a capital gains tax return and pay the tax following the disposal of UK residential property.

There were no surprises today but the potential for significant changes to inheritance tax and capital gains tax.

If you would like to discuss any points please do not hesitate to contact us.