After a challenging 12 months, Chancellor Rishi Sunak delivered his second and much anticipated Budget on Wednesday 3 March 2021. One he might have hoped would be set against a backdrop of a country on its wayto a post-pandemic recovery. Instead, lockdown restrictions are still in force across the country and protecting jobs and livelihoods remains a top priority.
PwC hosted a live webcast on 4th March to discuss the Budget and the implications of the key announcements of the 3rd March on businesses. Here is a link to the recording of the session https://download.pwc.com/uk/eng/host/2021/mar/budget_webcast.mp4
Key headlines:
Company taxation
- As has been widely anticipated, the UK corporation tax rate will increase from 19% to 25% on 1 April 2023 for companies with profits over £250,000.
- The loss carry back provisions for corporate entities which have suffered losses in 2020-21 and 2021-22 has been extended from one year to three years.
- A 130% “super deduction” capital allowances rate has been announced for main pool additions with a 50% “First Year Allowance” for special rate pool additions for two years.
Employment taxes / Income taxes
- There will be an extension to the Coronavirus Job Retention Scheme or “Furlough” scheme to 30 September 2021.
- There are no new proposed increases for income tax, national insurance tax and capital gains tax rates.
ESG
- A number of announcements were made, including in relation to a new UK green infrastructure bank and a new retail green savings product.
Other measures
- The inheritance tax and pension lifetime allowance thresholds will remain unchanged.
- The Government has announced various measures to boost high-skilled migration including a simplified VISA process for highly skilled workers.
- The Stamp Duty Land Tax nil-rate band will remain at £500,000 until 30 June 2021, and then will decrease to £250,000 until 30 September 2021.
Recent Comments