Autumn Budget 2021: key facts
The Chancellor struck a very upbeat tone in the second Budget of 2021, increasing spending pledges significantly. But what were the key tax announcements?
On tax measures the Budget was extremely light. Perhaps this is understandable given the major reforms that were announced earlier this year (increases to rates of corporation tax, NI, dividends). But there were still some things to look for in the documentation, aside from those already announced earlier. Here are the highlights:
- An across the board increase in the national living and national minimum wage rates
- A further extension to the annual investment allowance, which will remain at £1 million until 31 March 2023
- Confirmation that basis period reform will go ahead, with the transitional year in 2023/24, and an automatic spreading mechanism
- A cut in the Universal Credit taper rate from 63% to 55%
- A 50% cut to business rates in 2022/23 for businesses in the hospitality, retail and leisure sectors
- An increase in the rate of relief for three cultural activities, including museums and galleries
- An extension of the UK Property CGT reporting deadlines, from 30 days to 60 days
- The announcement that alcohol duty will be heavily simplified.
The full overview of tax legislation and rates, which contains links to the underlying policy notes, is now available here.
Related Topics
-
How much will you save with reduced scale charges?
HMRC has reduced the VAT fuel scale charge by nearly 6% for company-provided cars. When does the new reduced rate take effect and how do you make the calculations?
-
Avoid the trading allowance trap
In late 2024 you became self-employed. You’re now completing your tax return for 2024/25 and will claim the trading allowance instead of a tax deduction for business expenses. Could this impact your NI record and state pension entitlement?
-
Time off for fertility treatment?
A survey by Fertility Matters at Work has revealed that more than one-third of employees undergoing fertility treatment have resigned or are considering resigning because of the physical and emotional toll. Is there a right to time off for fertility treatment?