ABOUT US OUR SERVICES PEOPLE READING ROOM CONTACT US 2021 BUDGET News, Tax updates 2021 BUDGET 4 MARCH 2021 / COMMENTS (0) NEWS TAX UPDATES Yesterday, 3 March 2021 the Chancellor, Rishi Sunak, delivered his second Budget. Given the dire straits of the country’s finances due to the effects of the fight against Covid-19 many were expecting tough measures. Therefore, the Chancellor realized that what the country needs at the moment is a boost to the economy rather than fiscal tightening. With this in mind he decided not to abolish the Business Asset Disposal relief (previously entrepreneurs’ relief) and not to introduce a wealth tax. Also, no immediate hike in tax rates means that the most feared alignment of capital gain tax to income tax has not materialized. Please download here our 2021 Budget analysis. Herewith below we highlighted the major tax measures. Personal tax The Capital Gain Tax annual exemption will be maintained at the current level of £12,300 for individuals and personal representatives until April 2026. The Income Tax personal allowance will increase to £12,570 in the financial year 2021-22 but it will be frozen for a period of four tax years starting with the financial year 2022-23. The band of savings income that is subject to the 0% starting rate will remain at £5,000 for the financial year 2021-22. Property The increase of the he temporary residential nil-rate band to £500,000 that was supposed to end in March will be extended until the end of June 2021. The introduction of a 2% Stamp Duty Land Tax surcharge on the purchase of UK residential property by non-UK resident buyers from 1 April 2021. This had already been announced. Business Corporation tax to rise to 25% for larger companies from financial year 2023. From 1 April 2023 the rate of corporation tax will increase to 25% for companies with profits of more than £50,000. The current rate of 19% will apply to companies with profits up to £50,000 with a tapered rate applying to profits between £50,000 and £250,000. The 19% rate will not apply to close investment-holding companies. Carry-back of trading losses temporarily extended. Trading losses incurred in the current and next financial years will be allowed to be carried back and offset against profits of the last three years. Losses will be carried back against later years first and can generate repayments of tax. Super-deduction Investments in qualifying new plant and machinery between 1 April 2021 and 31 March 2023 will be relieved by a super-deduction of 130%. Furthermore we will like to report that both the furlough and self-employed income support schemes have been extended until September 2021. If you would like to discuss any of the above topics or have any query please contact a member of our team. LATEST POSTS Your overseas assets, income or gains HMRC letter 2021 BUDGET BREXIT – The Border with the European Union from January 2021 Government to extend UK furlough scheme until end of October OUR SERVICES CORPORATE INDIVIDUALS START-UPS FAMILY OFFICES TRUSTS GBP Australian Dollar: 1.7352 Brazilian Real: 4.3475 Chinese Yuan: 8.8157 Euro: 1.1406 Hong Kong Dollar: LATEST POSTS Your overseas assets, income or gains HMRC letter 2021 BUDGET BREXIT – The Border with the European Union from January 2021 Government to extend UK furlough scheme until end of October FOLLOW US Tweets by @LagganAssociat1 CONTACT US Email: info@laggan-uk.com Phone: 0044 (0)20 7631 2061 Address: 5th floor, North Side 7/10 Chandos Street Cavendish Square London W1G 9DQ Copyright 2017 Designed by Idea188 - Laggan & Associates Limited - Terms & Conditions - Privacy Statement We use cookies to ensure that we give you the best experience on our website, click OK if you are happy with it. If you wish to know more, click on Read More. OKRead more