{"id":354,"date":"2021-03-04T12:31:00","date_gmt":"2021-03-04T12:31:00","guid":{"rendered":"http:\/\/www.unbiasedfinancialgroup.co.uk\/blog\/?p=354"},"modified":"2021-03-09T12:37:54","modified_gmt":"2021-03-09T12:37:54","slug":"budget-2021-details","status":"publish","type":"post","link":"http:\/\/www.unbiasedfinancialgroup.co.uk\/blog\/2021\/03\/04\/budget-2021-details\/","title":{"rendered":"Budget 2021 – details"},"content":{"rendered":"\n

The Chancellor of the Exchequer Rishi Sunak has announced that\nthe bill for addressing the coronavirus pandemic is currently \u00a3407bn, which is\nequivalent to 10x HS2 projects or 20 Crossrail\u2019s.
\n 
\nTax thresholds<\/strong><\/p>\n\n\n\n

The key financial changes announced in the budget are as\nfollows: 
\nThe basic rate income tax threshold has been slightly increased from April 2021\nto \u00a312,570 from \u00a312,500 and the high rate threshold to \u00a350,270 from \u00a350,000.\nThe thresholds will then stay at these levels for the following 5 years.
\n 
\nThe inheritance tax nil-rate band will remain at the existing level of \u00a3325,000\nand also the residence nil-rate band of \u00a3175,000 until at least 2026. The\nresidence nil-rate band taper will continue to start at \u00a32 million.
\n 
\nThe capital gains annual exempt amount has also been frozen at \u00a312,300 until\n2026.
\n 
\nDividends also escaped. The tax-free dividend allowance has been kept at\n\u00a32,000.
\n 
\nPensions<\/strong>
\n 
\nThe pension lifetime allowance has also been frozen at \u00a31,073,100 until 2026.
\n 
\nThe state pension will however rise by 2.5% next tax year and the triple lock\nwill remain in place.
\n 
\nProperty<\/strong>
\n 
\nThe 0% stamp duty land tax holiday on the first \u00a3500,000 has been extended\nuntil 30 June 2021. The threshold will then be reduced down to \u00a3250,000 for a\nfurther 3 months and then return back to \u00a3125,000 from October.
\n 
\nLenders have been withdrawing from providing low-deposit mortgages. Therefore\nto help first time buyers the government is guaranteeing 95% loan-to-value\nmortgages up to \u00a3600,000.
\n 
\nCompanies<\/strong>
\n 
\nFrom April 2023 corporation tax will increase for companies with profits above\n\u00a350,000. Tapering from 19% up to 25% above \u00a3250,000. This will affect the UK\ncompanies, but as it is progressive and can be offset by \u2018super deduction\u2019 on\nbusiness investment as companies investing can benefit from a 130% first-year\ncapital allowance.
\n 
\nIR35 changes delayed from last year will go ahead in April 2021. Companies must\nnow collect income tax and NIC from the contractor\u2019s fee and pay it over to\nHMRC.
\n 
\nThe furlough scheme will be extended until October 2021. However, employers\nwill be asked to contribute 10% in July and increased to 20% in August.
\n 
\nThe trading loss carry-back rule has also been extended from the existing one\nyear to three years.
\n 
\nThe VAT reduction for the UK\u2019s tourism and hospitality sector has been extended\nuntil October 2021 and reduced rate of 12.5% will then be applied until April\n2022.
\n 
\nBusiness rate reliefs have also been extended to July 2021 and then a reduced\nrate of 66% until April 2022.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Chancellor of the Exchequer Rishi Sunak has announced that the bill for addressing the coronavirus pandemic is currently \u00a3407bn, which is equivalent to 10x HS2 projects or 20 Crossrail\u2019s.   Tax thresholds The key financial changes announced in the budget are as follows:  The basic rate income tax threshold has been slightly increased from … <\/p>\n

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