UK Budget delivered to Parliament on 3 March 2021
Here is a summary of what was proposed:
- Extension of the Furlough Scheme until September 2020 but with the accompanying stick of additional resourcing to HMRC to investigate fraudulent or incorrect claims.
- Extension of the Self-Employed Income Support Scheme also until September 2020 and in doing so the welcome removal of the anomaly which prevented businesses started in 2019/2020 from claiming.
- The introduction of a recovery loan scheme to follow on from CBILs and the Bounce back loan, which will enable businesses of any size to borrow between £25,000 and £10,000,000.
- A super-deduction for qualifying capital expenditure of 130% to persuade businesses to invest and innovate from 1 April 2021.
- The extension of the £500,000 nil rate Band limit for Stamp Duty on residential property purchases until 30 June 2021 with a transitional limit if £250,000 until 30 September 2021.
- An extension to the business rates holiday until 30 June 2021 with a 75% discount from then to the end of the year.
- An increase in the rate of corporation tax to 25% from 1 April 2023 for businesses with profits of more than £250,000 with a return to the marginal rate calculation for profits between £50,000 and £250,000.
- The freezing of rates and allowances in relation to Income Tax, Capital Gains Tax, Inheritance Tax, VAT, and the Lifetime Pension Allowance.
Please contact our team if you would like to discuss how this budget will effect you and your business.