Tax

Budget 2021 - the tax headlines

Details of tax changes in the Budget

The chancellor spoke at 12.30 to outline the tax & financial plans for the next year. The following changes in tax were mentioned in the speech.

More details will be published in further blogs going forward.

Income Tax for individuals

  •         The Pensions Lifetime Allowance will be maintained at its current level of £1,073,100
  •         Capital Gains tax rates have not been altered
  •         Personal Allowances will increase to £12,570 for 2021/22, and will remain at this level until April 2026 (2025/26)
  •         Higher rate threshold will increase to 50,270 for 2021/22, and will remain at this level until April 2026 (2025/26)
  •         The Capital Gains Annual Allowance will remain at £12,300 per individual, and rates currently in force have not been changed.
  •         The Inheritance Tax Nil Rate Band will remain at £325,000 per person, plus any Nil Rate Band entitlement.  No changes have been made to gifting or annual exemption rules.

Corporate Tax changes

Corporation Tax increased to 25% from April 2023. Profits of up to £50,000 will not be affected and there will be a marginal. 

Loss carry back claims can now be extended to 3 years

New investment qualifies for 130% super deduction from profits  

Other issues

8 Freeports will be created with special tax regimes. 

New HMRC task force with 1,000 people to counter evasion