On Wednesday 3rd March 2021, Chancellor Rishi Sunak presented the 2021 Budget against a backdrop of ongoing economic hardship, unveiling his economic plan to help the UK recover from the COVID-19 pandemic.

In his speech, The Chancellor stated his budget ‘meets the moment with a three-part plan to protect the jobs and livelihoods of the British people’.

Main Budget proposals

Tax measures

  • A super-deduction for companies investing in new plant and machinery
  • A time extension of the temporary increase to the SDLT nil rate band for residential property in England and Northern Ireland
  • An extension to the temporary 5% reduced rate of VAT for the hospitality and leisure sector
  • A temporary increase in the carry-back period for business losses
  • An increased rate of corporation tax from 2023.

Other measures

  • A new mortgage guarantee scheme
  • Extension to the Job Retention Scheme
  • A Self-Employment Income Support Scheme fourth and fifth grant
  • An extension to the business rates holiday in England.

Previously announced measures:

  • A cap on the amount of R&D tax credit paid to a loss-making small or medium-sized enterprise
  • New rules apply to off-payroll working payments made for services provided on or after 6 April 2021.

Our Budget Summary provides an overview of the key announcements made in the Chancellor’s speech. It also looks beyond the headlines and provides more comprehensive details on the lesser-known changes that may impact your business and/or your personal finances.

Throughout the Summary, we have included informative comments to help you assess the effect that the proposed changes may have on you personally.

If you have any questions regarding any of the topics mentioned in the Chancellor’s announcement, or would like further clarity regarding how the changes might affect you, please do not hesitate to get in touch with a member of our dedicated team.

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