Budget 2021 Guide Analysis of the chancellor's budget and its impact on you, your family and your business - Informed Pensions
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Budget 2021 Guide Analysis of the chancellor’s budget and its impact on you, your family and your business. w www.informedpensions.com e info@informedpensions.com t 0800 788 0887 Postford Mill, Mill Lane, Chilworth, Guildford GU4 8RT
BUDGET 2021 BUDGET 2021
Contents
This Budget follows a year
of extraordinary economic
challenge as a result of the
ongoing COVID-19 pandemic.
04 Budget 2021:
The announcements set out how
Key announcements at a glance
the government is extending
What was announced in Chancellor Rishi
its economic support to reflect
Sunak’s speech?
the cautious easing of social
distancing rules and the
05 Budget 2021: Economic and fiscal outlook
reopening of the economy in the
Significant boost to the economy this year and
government’s roadmap.
into the next
05
05 Budget 2021: COVID-19
Additional coronavirus vaccination
roll-out support
05 Budget 2021: Strengthening the
public finances
What you need to know
06 Budget 2021: Protecting jobs and livelihoods
Support to reopen the economy set out in
the roadmap
05 06
07 Budget 2021: Protecting jobs and livelihoods
What you need to know
Budget 2021 07 Budget 2021: Strengthening the
public finances
Taking steps to get the public finances
back on track
Delivering the Budget in Parliament on 3 March 2021, Chancellor of the 08 Budget 2021: An investment-led recovery
Exchequer Rishi Sunak said, ‘This Budget meets the moment with a three- Returning the public finances to a sustainable
path in the medium term
part plan to protect the jobs and livelihoods of the British people. First,
09 Budget 2021: An investment-led recovery
we will continue doing whatever it takes to support the British people and What you need to know
businesses through this moment of crisis.
07 08
09 Budget 2021: Personal tax
Taxing times ahead
S
econd, once we are on the way to those hardest hit, with extensions to furlough,
recovery, we will need to begin fixing self-employed support, business grants, loans What does Budget 2021 10 Budget 2021: Welfare
the public finances – and I want to be and VAT cuts. mean for your future plans? Universal Credit boost continues to September
honest today about our plans to do that. He also set out plans to drive jobs, growth If you would like to review your current
And, third, in today’s Budget we begin the and investment to help the economy situation or discuss how Budget 2021 could 10 Budget 2021: Scotland, Wales
work of building our future economy.’ rebound - and spoke about the tough choices affect your future plans, please contact us – and Northern Ireland
This Budget follows a year of extraordinary required to put the public finances on a more we look forward to hearing from you. Continued COVID support for
economic challenge as a result of the ongoing sustainable path. devolved administrations
COVID-19 pandemic. The announcements
set out how the government is extending its Chancellor’s three-point plan 11 Budget 2021: Chancellor confirms
economic support to reflect the cautious easing to protect jobs and strengthen furlough scheme extended
of social distancing rules and the reopening of public finances Supporting businesses, employees and
the economy in the government’s roadmap. 1. Billions to support businesses and families the self-employed across the UK
10 11
As the economy reopens, this Budget also through the pandemic
sets out the steps the government is taking to 2. Investment-led recovery as UK emerges 11 Budget 2021: Housing
support the recovery. The Chancellor said his from lockdown Extension to Stamp Duty Land Tax holiday
immediate priority continues to be supporting 3. Future changes to strengthen public finances
02 BUDGET 2021 BUDGET 2021 03BUDGET 2021 BUDGET 2021
Budget 2021:
Budget 2021: Key announcements at a glance
Economic and fiscal outlook Budget 2021:
What was announced in Chancellor Rishi Sunak’s speech? Strengthening the
Significant boost to the economy this year and into the next
T public finances
he Chancellor of the Exchequer, Rishi n The government has maintained the Nations and regions
Sunak, says he would do ‘whatever it Lifetime Allowance at its current level of n First eight sites for Freeports in The Chancellor of the Exchequer, Rishi Sunak, announced during his Budget
takes’ during the pandemic, and that he £1,073,100 until April 2026. England announced 2021 speech that COVID-19 has had a profound effect on the UK economy.
has done and will continue to do so. ‘It’s going n £1.2 billion in funding for the Scottish
What you need to know
As the pandemic hit, the UK entered its first recession in 11 years.
to take this country, and the whole world, a Coronavirus (COVID-19) government, £740m for the Welsh
M
long time to recover from this extraordinary n Extension to Coronavirus Job Retention government and £410m for the Northern aintaining the Income Tax
As a result of the pandemic,
situation,’ he told Parliament. Scheme (CJRS) until the end of September Ireland executive Personal Allowance and higher
Mr Sunak said he wants to be honest about n 80% of employees’ wages to continue to borrowing is set to reach rate threshold from April 2022
the government’s plans for fixing the public be paid by the government for hours they Other announcements 16.9% of GDP in 2020/21, the until April 2026.
finances, and set out plans for the future. These cannot work n Duties on all alcohol frozen for a second year highest level of peacetime To balance the need to raise
are the key Budget 2021 takeaways announced n Employers will be asked to contribute n No extra duties on spirits, wine, cider or beer borrowing on record, and revenue with the objective of having an
from his Budget 2021 speech on 3 March. 10% in July, 20% in August and 20% in n Eleventh consecutive year fuel duty to be frozen internationally competitive tax system,
underlying debt will peak at
September, as the economy reopens n £100 million to set up an HMRC taskforce the rate of Corporation Tax will increase
97.1% in 2023/24.
Economy n Support for the self-employed extended with 1,000 investigators to tackle fraud in to 25%, which will remain the lowest
n UK economy contracts by 10% in 2020 until September COVID support schemes rate in the G7. In order to support the
n Chancellor forecasts a ‘swifter and more n 600,000 more self-employed people will be recovery, the increase will not take effect
H
sustained’ recovery eligible for help as access to grants is widened Business e said the Office for Budget in the November forecast, Mr Sunak said until 2023. Businesses with profits of
n 700,000 people have lost their jobs since the n Working Tax Credit claimants will get n Corporation Tax on company profits set to Responsibility (OBR) expects the that the economy will recover to its pre- £50,000 or less, around 70% of actively
coronavirus (COVID-19) pandemic began £500 one-off payment rise from 19% to 25% in April 2023 economy to recover quickly when crisis peak around six months earlier, with trading companies, will continue to be
n Unemployment expected to peak at 6.5% next n Minimum wage to increase to £8.91 an n Corporation Tax rate to be kept at 19% for restrictions are lifted. The measures in GDP around 0.75% higher in Spring and taxed at 19% and a taper above £50,000
year, lower than 11.9% previously predicted hour from April companies with profits of less than £50,000 Budget 2021, alongside previous support Summer 2021. will be introduced so that only businesses
n £20 increase in Universal Credit worth £1,000 n Tax breaks for firms to ‘unlock’ £20 billion – including next year’s £100 billion capital As a result of the pandemic, borrowing with profits greater than £250,000 will be
Growth a year to be extended for another six months worth of business investment programme – will provide a significant is set to reach 16.9% of GDP in 2020/21, taxed at the full 25% rate.
n Economy set to rebound in 2021, with n VAT registration and deregistration boost to the economy this year and into the the highest level of peacetime borrowing Maintaining Inheritance Tax thresholds
projected annual growth of 4% this year Housing thresholds will not change for a further next, while continuing to support people, on record, and underlying debt will peak at at their current levels until April 2026.
n Economy forecast to return to pre-COVID n Stamp Duty Land Tax (SDLT) holiday period of two years from 1 April 2022 businesses and public services. The OBR 97.1% in 2023/24. The OBR forecast shows Fuel duty will be frozen for the 11th
levels by middle of 2022, with growth of on property purchases in England and n VAT rate for hospitality firms to judges that the Budget’s investment package that the medium-term outlook for the public consecutive year.
7.3% next year Northern Ireland extended to June, be maintained at reduced 5% rate will increase business investment by around finances has improved, with the current Alcohol duties will be frozen across the
with no tax liability on sales costing less until September 10% at its peak in 2022/23. budget almost in balance, and underlying board for the second year running, saving
Borrowing than £500,000 n Interim 12.5% VAT rate to apply for the Despite more severe restrictions in the debt as a share of GDP is expected to fall in drinkers £1.7 billion.
n UK to borrow a peacetime record following six months first quarter of this year than anticipated the last two years of the forecast. t Capping the amount of SME payable
of £355 billion this year Transport, environment and n Firms will be able ‘deduct’ investment costs R&D tax credit that a business can
n Borrowing to total £234 billion in 2021/22 infrastructure from tax bills, reducing taxable profits by 130% receive in any one year at £20,000 (plus
Budget 2021: COVID-19
n Debt levels set to peak at 97.1% of GDP in n Leeds will be the location for a new UK n Incentive grants for apprenticeships three times the company’s total PAYE and
2023/24 Infrastructure Bank to rise to £3,000 and £126 million NICs liability).
n The new UK Infrastructure Bank will have for traineeships Lifetime Allowance maintained at its
Personal taxation, £12 billion in capital, with the aim of n For firms in England, the business rates current level of £1,073,100 until April 2026.
investments and pensions
n No changes to rates of Income Tax and
funding £40 billion worth of public and
private projects
holiday to continue until June followed by
a 75% discount
Additional coronavirus virus vaccination roll-out support The adult Individual Savings Account (ISA)
annual subscription limit for 2021/22 will
National Insurance (CPI rise from April 2021) n £15 billion in green bonds, including n £5 billion in Restart grants for shops and remain unchanged at £20,000. t
An extra £1.65 billion cash injection was announced by the Chancellor of
n Personal Income Tax allowance to be for retail investors, to help finance the other businesses that closed due to COVID
frozen at £12,570 from April 2022 to 2026 transition to net zero by 2050 n £6,000 grant for premises for non- the Exchequer, Rishi Sunak, to ensure the COVID-19 vaccination roll-out in
n Higher Rate Income Tax threshold to be essential outlets due to re-open in April England continues to be a success.
frozen at £50,270 from 2022 to 2026 Health and £18,000 for gyms, personal care
A
n No changes to Inheritance Tax or Lifetime n £19 million announced for domestic providers and other hospitality and further £28 million will increase the a third dose of vaccine to improve the response
Pension Allowance or Capital Gains Tax violence programmes, funding a network of leisure businesses UK’s capacity for vaccine testing, against current and future variants of COVID-19.
allowances until April 2026 respite rooms for homeless women n New visa scheme to help start-ups and support clinical trials and improve the A further £5 million on top of a previous
n Adult Individual Savings Account (ISA) n £40 million of new funding for victims of rapidly growing tech firms source talent UK’s ability to rapidly acquire samples of new £9 million investment in clinical-scale mRNA
annual subscription limit for 2021/22 1960s Thalidomide scandal and lifetime from overseas variants of COVID-19. manufacturing will create a ‘library’ of
remains unchanged at £20,000 support guarantee n Contactless payment limit will rise to Mr Sunak said £22 million would be vaccines to work against COVID-19 variants
n Annual subscription limit for Junior n £10 million to support armed forces £100 later this year allocated for a world-leading study to test the for possible rapid response deployment.
Individual Savings Accounts (JISAs) and veterans with mental health needs n Review of the current 8% bank surcharge effectiveness of combinations of different The Chancellor also extended £500 Test
Child Trust Funds for 2021/22 remains n £1.65 billion to support the UK’s COVID to make sure the sector ‘remains COVID-19 vaccines. This will also fund the and Trace support payments in England until
unchanged at £9,000 vaccination rollout internationally competitive’ world’s first study assessing the effectiveness of the summer. t
04 BUDGET 2021 BUDGET 2021 05BUDGET 2021 BUDGET 2021
Budget 2021:
Budget 2021: Budget 2021:
Strengthening the
Protecting jobs and livelihoods Protecting jobs public finances
Support to reopen the economy set out in the roadmap
The Chancellor of the Exchequer, Rishi Sunak, announced that, since make home ownership more achievable
and livelihoods
for thousands of people, and in England
March 2020, the government has provided £20 billion of grants to
and Northern Ireland he extended the What you need to know
businesses alongside over £10 billion of business rates holidays and £73 temporary cut in Stamp Duty Land Tax to
A
billion loans and guarantees, supporting every sector of the economy. support the housing market and protect n extension of the Coronavirus in England will benefit from business
and create jobs. Job Support Scheme to rates relief.
Kickstart and Restart schemes receive the vital support that they need at this September 2021 across the UK. Extension of the apprenticeship hiring
He said the Coronavirus Job Retention stage of the pandemic. UK’s tourism and hospitality sector An extension of the UK-wide Self incentive in England to September 2021
Scheme (CJRS) and Self-Employment Income Alongside this, the Budget also extends Employment Income Support scheme and an increase of payment to £3,000.
Support Scheme (SEISS) have protected New UK-wide business rates reliefs, Statutory Sick Pay to September 2021, with 600,000 more £7 million for a new ‘flexi-job’
jobs and businesses in every part of the mortgage guarantee scheme support and the VAT cut for the UK’s tourism people who filed a tax return in 2019/20 apprenticeship programme in England
UK. Incomes have been further protected The CJRS and SEISS are being extended and hospitality sector. The Chancellor said now able to claim for the first time. that will enable apprentices to work with
through increases to Universal Credit and to provide protection to businesses and that the Recovery Loan Scheme will ensure An extension to the temporary cut in a number of employers in one sector.
Taking steps to get the public
Working Tax Credit recipients, expanded individuals that continue to be affected by that businesses in all parts of the UK can Stamp Duty Land Tax in England and Additional £126 million for 40,000 finances back on track
Statutory Sick Pay, and help with rent and the restrictions. For those in need of direct access the finance they need. Northern Ireland until September will more traineeships in England, funding
I
Council Tax. Alongside this, government income support, the government is extending The new one-off Restart Grants will give support the housing market and protect high-quality work placements and n the near term, the Chancellor of the
action through the Plan for Jobs, including the temporary Universal Credit increase and businesses further certainty in order to and create jobs. training for 16-24-year-olds in 2021/22 Exchequer, Rishi Sunak, said continuing
the Kickstart and Restart schemes, is helping making a one-off payment to Working Tax plan ahead and safely begin trading again A new mortgage guarantee scheme academic year. to support businesses, jobs and people’s
people looking for work. Credit. This Budget also confirms rates for over the coming months. The government will enable all UK homebuyers to secure a More than doubling the legal limit for livelihoods up and down the country is vital to
Budget 2021, the Chancellor said, builds a range of taxes and duties for the coming is also increasing support for traineeships mortgage up to £600,000 with a 5% deposit. single contactless payments, from £45 give the economy the best possible chance of
on this, extending this support to reflect the year. To help people with the cost of living as and apprenticeships to help people looking £5 billion for new Restart Grants – a to £100. rebounding as restrictions are lifted.
cautious reopening of the economy set out the economy recovers, this includes freezes for work. Where certain measures do not one-off cash grant of up to £18,000 for £10 million to support veterans with However, he said it will be necessary to take
in the roadmap. Further investment is being in fuel and alcohol duty. apply UK-wide, the devolved administrations hospitality, accommodation, leisure, personal mental health needs across the UK. steps to get the public finances back on track once
made in vaccine deployment and public Mr Sunak announced a new UK-wide will continue to receive funding through the care and gym businesses in England. £19 million to tackle domestic abuse the economic recovery is durably underway.
services to ensure that people continue to mortgage guarantee scheme that will Barnett formula in the usual way. t A new UK-wide Recovery Loan Scheme in England and Wales, with funding for
to make available loans between £25,001 a network of ‘Respite Rooms’ to support Highest income households
and £10 million, and asset and invoice homeless women and a programme to The fairest way repair the long-term impact of
finance between £1,000 and £10 million, prevent reoffending. the crisis on the public finances, Mr Sunak said,
to help businesses of all sizes through £90 million funding to support is to ask everyone to contribute, with the highest
the next stage of recovery. our government-sponsored national income households paying more.
Extension of the Film & TV Production museums in England due to the financial Budget 2021 takes steps towards this by
Restart scheme in the UK, with an additional impact of COVID-19. maintaining certain personal tax allowances and
£300 million to support theatres, museums £300 million for major spectator thresholds until the end of the forecast period.
and other cultural organisations in England sports, supporting clubs and governing Those in the highest income households will
through the Culture Recovery Fund. bodies in England as fans begin to return contribute more and nobody’s take-home pay will
Six-month extension of the £20 per to stadiums. be less than it is now.
week Universal Credit uplift in Great Small and medium-sized employers
Britain, with the Northern Ireland in the UK will continue to be able to Sustainable public finances
Executive receiving additional funding to reclaim up to two weeks of eligible In 2023 the rate of Corporation Tax paid by the
match the increase. A one-off payment Statutory Sick Pay (SSP) costs per largest and most profitable businesses will increase.
of £500 to eligible Working Tax Credit employee from the government. Mr Sunak said this is a fair way to deliver more
Mr Sunak announced a new UK-wide mortgage claimants across the UK. To further support the cashflow of sustainable public finances while protecting the
Extension to the VAT cut to 5% businesses, the government is extending UK’s strongly competitive position as the nation
guarantee scheme that will make home ownership
for hospitality, accommodation and the loss carry-back rules worth up to with the lowest Corporation Tax rate in the G7.
more achievable for thousands of people, and in
attractions across the UK until the end of £760,000 per company. The government’s action to repair the public
England and Northern Ireland he extended the September, followed by a 12.5% rate for a £100 million for a new Taxpayer finances will be supported by new steps to tackle
temporary cut in Stamp Duty Land Tax to support further six months until 31 March 2022. Protection Taskforce to crack down on tax avoidance and evasion that will raise £2.2
the housing market and protect and create jobs. 750,000 eligible businesses in the COVID fraudsters who have exploited UK billion between now and 2025/26. t
retail, hospitality and leisure sectors Government support schemes. t
06 BUDGET 2021 BUDGET 2021 07BUDGET 2021 BUDGET 2021
Budget 2021: increase the production of green energy
crops and forest products that can be used
An investment-led recovery
for energy.
Publication of the government’s ‘Build Back
Better: our plan for growth’.
The Chancellor announced a radical What you need to know Over £1 billion funding for a further 45
towns in England through the Towns Fund,
new super-deduction tax incentive for
supporting their long-term economic and
companies investing in qualifying plant Beginning April 2021, the new ‘super-deduction’ will cut companies’ social regeneration as well as their immediate
and machinery will mean for every
pound invested companies will see
tax bill by 25p for every pound they invest in new equipment. This is recovery from the impacts of COVID-19.
£135 million to progress A66 Trans-
taxes cut by up to 25p. worth around £25 billion to UK companies over the two-year period
Pennine upgrade.
the super-deduction will be in full effect. £28 million to fund the Queen’s Platinum
Jubilee celebrations in 2022, delivering a major
E
Budget 2021: ight new English Freeports will be investment in UK grassroots sports, enough for celebration for the UK.
An investment-led recovery
based in East Midlands Airport, around 700 new pitches. Plans for at least £15 billion of green gilt
Felixstowe & Harwich, Humber, Launching a review of Research & issuance in the coming financial year, to help
Liverpool City Region, Plymouth, Solent, Development tax reliefs to make sure the UK finance critical projects to tackle climate
Thames and Teesside. remains a competitive location for cutting- change and other environmental challenges,
Returning the public finances to a sustainable path in the medium term The £375 million UK-wide ‘Future Fund:
Breakthrough’ will invest in highly innovative
edge research.
£20 million to fund a UK-wide competition to
fund important infrastructure investment and
create green jobs across the UK.
companies, such as those working in life develop floating offshore wind demonstrators £150 million Community Ownership Fund
A
s well as addressing the immediate reviewing rules for equity offerings. The and fiscal strategy and will contribute to sciences, quantum computing or clean tech, that and help support the government’s aim to will allow communities across the UK to invest
challenges of the pandemic and the government is also launching Future Fund: productivity growth. are aiming to raise at least £20 million of funding. generate enough electricity from offshore wind to protect the assets that matter most to
requirement to return the public Breakthrough to support the scale-up of the Reforms to the immigration system will help to power every home by 2030. them, such as pubs, theatres, shops or local
finances to a sustainable path in the medium most innovative, R&D-intensive businesses. New UK Infrastructure Bank ambitious UK businesses attract the brightest £68 million to fund a UK-wide competition sports clubs.
term, the Chancellor of the Exchequer, Rishi Mr Sunak said Budget 2021 will also During the Spending Review 2020, Mr Sunak and best international talent. to deliver first-of-a-kind long-duration energy £18.8 million to transform local cultural projects
Sunak, said the government is acting now to position the UK to make the most of global announced £100 billion of capital investment in A new Help to Grow scheme to offer up to storage prototypes that will reduce the cost in Hartlepool, Carlisle, Wakefield and Yeovil.
lay the foundations for a recovery driven by opportunities after EU exit. The government 2021/22, a £30 billion cash increase compared 130,000 companies across the UK a digital and of net zero by storing excess low carbon Publication of the prospectus for the £4.8 billion
the private sector that spreads investment will create eight new Freeports in England, to 2019/20. He commented that this is the next management boost. energy over longer periods. UK-wide Levelling Up Fund, providing guidance
and opportunity throughout the UK by areas where businesses will benefit from stage in the plan to spend over £600 billion in £2.8 million to support a UK and Ireland bid £4 million for a biomass feedstocks for local areas on how to submit bids for the first
helping businesses to grow and improving more generous tax reliefs, simplified customs gross public investment over the next five years. to host the 2030 World Cup and £25 million programme in the UK to identify ways to round of funding starting in 2021/22. t
access to skills, capital and ideas. procedures and wider government support, In his Budget 2021 announcement he
bringing investment, trade and jobs which also set out more details on the new UK
New super-deduction tax incentive will regenerate regions across the country Infrastructure Bank. The Bank will partner
Budget 2021: Personal tax
The Chancellor announced a radical new that need it most. Freeports will benefit the with the private sector and local government
super-deduction tax incentive for companies whole of the UK. to increase infrastructure investment to help Inheritance Tax nil-rate band
investing in qualifying plant and machinery tackle climate change and promote economic and residence nil-rate band
that will mean for every pound invested Administrations to ensure the growth across the country. The Inheritance Tax nil-rate bands will remain at
companies will see taxes cut by up to 25p. delivery of Freeports Taxing times on the horizon existing levels until April 2026. The nil-rate band will
The government will help over 100,000 Discussions are continuing between the UK Reaching net-zero continue at £325,000, the residence nil-rate band will
small businesses UK-wide to boost their government and the devolved administrations greenhouse gas emissions continue at £175,000, and the residence nil-rate band
productivity by supporting them to to ensure the delivery of Freeports in The UK will host the 26th UN Climate Personal Allowance and National Insurance contributions taper will continue to start at £2 million. Qualifying
improve their management and adopt new Scotland, Wales and Northern Ireland as soon Change Conference of the Parties (COP26) higher rate threshold (HRT) (NICs) thresholds estates can continue to pass on up to £500,000
technologies. This will enable them to learn as possible. The Levelling Up, UK Community in Glasgow between 1–12 November 2021. The Income Tax Personal Allowance will As previously announced, and legislated and the qualifying estate of a surviving spouse or
new skills, save time and money, and reach Renewal, Towns and Community Ownership The COP26 summit will bring parties together rise with CPI as planned to £12,570 from for in February 2021, in 2021/22 NICs registered civil partner can continue to pass on up to
their full potential. Funds will create well-paid jobs, revitalise to accelerate action towards the goals of April 2021 and will remain at this level until thresholds will rise with CPI, bringing the £1 million without an Inheritance Tax liability.
places and develop hubs of innovation in the Paris Agreement and the UN Framework April 2026. The Income Tax higher rate tax NICs Primary Threshold/Lower Profits Limit
Reforming pension rules on investment every part of the UK. Convention on Climate Change. (HRT) will rise as planned to £50,270 from to £9,568 and the Upper Earnings Limit Capital Gains Tax Annual Exempt
This Budget, the Chancellor announced, will Alongside the Budget, the Chancellor said Mr Sunak said the government remains April 2021 and will remain at this level until (UEL)/Upper Profits Limit (UPL) to £50,270, Amount (AEA) uprating
further help businesses access the skills, the government’s wider economic plan for committed to growth that is based on a April 2026. The Personal Allowance applies in line with the Income Tax HRT. The UEL/ The value of gains that a taxpayer can realise
technology and capital they need by modernising significant investment in skills, infrastructure foundation of sustainability, as the UK across the UK. The HRT for savings and UPL will then remain aligned with the HRT before paying Capital Gains Tax, the AEA, will
and streamlining migration rules, reviewing and innovation is set out in ‘Build Back Better: makes progress towards meeting its dividend income will also apply UK-wide. at £50,270 until April 2026. All other NICs be maintained at the present level until April
tax support for research and development, our plan for growth’. Public investment is a commitment to reach net-zero greenhouse The HRT for non-savings and non-dividend thresholds will be considered and set at 2026. It will remain at £12,300 for individuals,
reforming pension rules on investment and significant part of the government’s economic gas emissions in 2050. t income will apply to taxpayers in England, future fiscal events. NICs thresholds apply personal representatives and some types of
Wales and Northern Ireland. across the UK. trusts and at £6,150 for most trusts.t
08 BUDGET 2021 BUDGET 2021 09BUDGET 2021 BUDGET 2021
Budget 2021: Budget 2021:
Budget 2021:
£27 million in the Aberdeen Energy
Welfare
Transition Zone and £5 million in the
Global Underwater Hub in Scotland, the
first stage in delivering the North Sea
Chancellor confirms Housing
furlough scheme extended
Transition Deal.
Universal Credit boost Extension to Stamp Duty
continues to September Land Tax holiday
Supporting businesses, employees and
Universal Credit increase Temporary Stamp
The government is extending the temporary £20 per the self-employed across the UK Duty Land Tax (SDLT) cut
week increase to the Universal Credit standard allowance Chancellor of the Exchequer Rishi Sunak
for a further six months in Great Britain, the Chancellor said the government will extend the
of the Exchequer, Rishi Sunak, announced, on top of the temporary increase in the residential SDLT
planned uprating. This measure will apply to all new and nil-rate band to £500,000 in England and
existing Universal Credit claimants. Northern Ireland until 30 June 2021. From
1 July 2021, the nil-rate band will reduce to
Additional support for Working Tax Credit claimants £250,000 until 30 September 2021 before
The government is making a one-off payment of £500 to returning to £125,000 on 1 October 2021.
eligible Working Tax Credit claimants across the UK, to
provide continued extra support over the next six months. New mortgage guarantee scheme
Budget 2021: Mr Sunak announced the government will
Scotland, Wales
Universal Credit surplus earnings threshold introduce a new mortgage guarantee scheme in
Mr Sunak said the government will maintain the higher April 2021. This scheme will provide a guarantee
surplus earnings threshold of £2,500 for Universal Credit to lenders across the UK who offer mortgages
and Northern Ireland
claimants for a further year until April 2022, when the to people with a deposit of just 5% on homes
threshold will revert to £300. Coronavirus Job This means that over 600,000 individuals with a value of up to £600,000. Under the
Retention Scheme (CJRS) may be newly eligible for SEISS, including scheme, all buyers will have the opportunity
Universal Credit Minimum Income Floor suspension To support businesses and employees many new to self-employment in 2019/20. to fix their initial mortgage rate for at least five
The government will continue the suspension of the Minimum Continued COVID support for devolved administrations across the UK through the next stage All other eligibility criteria will remain the years should they wish to. The scheme, which
Income Floor (MIF) for self-employed Universal Credit claimants of the pandemic, the Chancellor of the same as the third grant. Further details will will be available for new mortgages up to 31
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until the end of July 2021, the Chancellor announced. The MIF ndividuals and businesses in Three Growth Deals in Scotland – Exchequer, Rishi Sunak, announced the be published in due course. December 2022, will increase the availability of
will be gradually reintroduced from August, but DWP work Scotland, Wales and Northern Ayrshire, Argyll & Bute and Falkirk – will government is extending the CJRS for a mortgages on new or existing properties for
coaches will be given discretion to not apply it on an individual Ireland, the Chancellor of the receive funding more quickly. further five months from May until the end SEISS fifth grant those with small deposits.
basis where they assess that claimants’ earnings continue to be Exchequer, Rishi Sunak, announced, £4.8 million to support the of September 2021. The Chancellor said the fifth and final
affected by COVID-19 restrictions. will continue to be supported by development of a demonstration Employees will continue to receive 80% SEISS grant covers May to September. Change to Support for Mortgage
the UK Government through the hydrogen hub in Holyhead, Anglesey. of their current salary for hours not worked. The value of the grant will be determined Interest for claimants moving home
Universal Credit debt deductions cap and Coronavirus Job Retention Scheme, Up to £30 million for the Global There will be no employer contributions by a turnover test, to ensure that The Chancellor said the government will help
advance repayments self-employment grants, loan Centre for Rail Excellence in Wales. beyond National Insurance contributions support is targeted at those who need Support for Mortgage Interest claimants
There will be support for claimants to keep more of schemes and VAT cuts. Devolved Three City and Growth Deals – in (NICs) and pensions required in April, May it the most as the economy reopens. in Great Britain to move home by allowing
their Universal Credit awards while ensuring they meet administrations have received Barnett North Wales, Mid Wales and Swansea and June. From July, the government will People whose turnover has fallen by them to add the legal costs associated with
their financial obligations by bringing forward previously funding to provide support in areas of Bay – will receive funding more quickly. introduce an employer contribution towards 30% or more will continue to receive the transferring their claim to a new property to
announced changes. From April 2021, the period over which devolved responsibility. Northern Ireland will benefit from the cost of unworked hours of 10% in July, full grant worth 80% of three months’ the value of their loan from 15 March 2021.
Universal Credit advances will be recovered will increase to This Budget, he confirmed, will the Corporation Tax exemption for the 20% in August and 20% in September, as average trading profits, capped at The Northern Ireland Executive will be funded
24 months, while the maximum rate at which deductions provide an additional £2.4 billion Northern Ireland Housing Executive, the economy reopens. £7,500. People whose turnover has to replicate this change in Northern Ireland.
can be made from a Universal Credit award will reduce from for the devolved administrations for Northern Ireland’s biggest landlord. fallen by less than 30% will receive a 30%
30% to 25% of the standard allowance. These measures were 2021/22 through the Barnett formula. Almost half of the £400 million Self-Employment Income Support grant, capped at £2,850. The final grant Bringing forward exemptions to the
previously due to be implemented from October 2021. This is an additional £1.2 billion for the New Deal for Northern Ireland Scheme (SEISS) fourth grant can be claimed from late July. Shared Accommodation Rate (SAR)
Scottish Government, £740 million for funding has been allocated, subject To support the self-employed across the From June 2021, care leavers up to the age of 25
Relaxation in Working Tax Credit hours requirement the Welsh Government, £410 million to business cases, to: new systems UK through the next stage of the pandemic, Income Tax exemptions for and those under the age of 25 who have spent
The government, Mr Sunak said, will continue to treat for the Northern Ireland Executive. for supermarkets and small Mr Sunak said the government’s fourth COVID-19 tests and home office at least three months in a homeless hostel will
Working Tax Credit claimants across the UK who have been The devolved administrations will traders to manage new trading SEISS grant will be worth 80% of three expenses be exempt from the SAR in Universal Credit and
furloughed, or experienced a temporary reduction in their also receive £1.4 billion of funding in arrangements; building greater months’ average trading profits, paid out in The government, Mr Sunak said, will Housing Benefit, helping more vulnerable people
working hours as a result of COVID-19, as working their 2021/22 outside the Barnett formula. resilience in medicine supply chains; a single instalment and capped at £7,500 extend the Income Tax exemption and access suitable housing. These measures were
normal hours for the duration of the CJRS. This allows these £27 million in the Aberdeen Energy promoting Northern Ireland’s in total. The grant will cover the period NICs disregard for COVID-19 antigen previously due to be implemented from October
claimants to remain eligible for Working Tax Credit. Transition Zone and £5 million in the goods and services overseas; and February to April, and can be claimed from tests provided by, or reimbursed by, 2023. The announcement applies in Great
Where spending decisions apply to Great Britain, the Global Underwater Hub in Scotland, supporting skills development. late April. Self-employed individuals must employers, and for employer-reimbursed Britain, and the Northern Ireland Executive will be
Northern Ireland Executive will be funded to replicate the the first stage in delivering the North £5 million to extend the Tackling have filed a 2019/20 Self Assessment tax expenses covering the cost of home office funded to similarly bring forward implementation
arrangements in Northern Ireland. t Sea Transition Deal. Paramilitary Programme in 2021/22. t return to be eligible for the fourth grant. equipment, to the 2021/22 tax year. t of these measures. t
10 BUDGET 2021 BUDGET 2021 11C O NTA C T U S
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