BUDGET MARCH 2021

KEY POINTS

In no particular order

Universal Credit

  • Uplift of £20 per week extended for another six months – in form of £500 payment
  • Universal Credit advances to be recovered over 24 months where taken out after April 2021
  • Maximum rate for recovery of Universal Credit advances to be 25% of standard allowance

Local Housing Allowance From June 2021

  • Care leavers under 25 to be exempt from Shared Accommodation Rate
  • Anyone under 25 who has spent at least three months in a homelessness hostel 25 to be exempt from Shared Accommodation Rate

Furlough Scheme

Extended to end September but with employer contribution in July, August and September

Support for Self Employed

  • To continue until September

Living Wage

  • To be increased to £8.91 from April 2021

Income Tax

  • The personal allowance will increase to £12,750 and then remain at that rate until 2026.
  • The higher-rate threshold will increase next year to £50,270 next year and also remain at that rate until 2026.

National Insurance

  • Contributions thresholds to rise in line with Consumer Prices Index
  • Primary threshold/lower profits limit will be £9,568  until April 2026
  • Upper earnings/profit limit will be £50,270 until April 2026.

Pensions Lifetime Allowance to be frozen

Inheritance Tax

To remain at £325,000 until April 2026

Stamp Duty

  • Holiday on duty payable on properties up to £500,000 continues until the end of June.
  • Holiday on duty payable on properties up to £250,000 continues until the end of September.
  • Return to usual levels (payable on purchases over £125,000) from 1 October

Capital Gains Tax

  • Annual exemption to remain ay £12,500 for individuals, personal representatives and certain types of trusts until April 2026
  • Annual exemption for other trusts to be £6,150 until April 2026

Corporation Tax From April 2023

  • Businesses with profits of more than £250,000 will be taxed at 25% rate;
  • Companies with profits of less than £50,000 will be taxed at 19%.

Businesses to be able to carry back losses of up to £2m in each of 2020/21 and 2021/22

VAT registration threshold remains at £85,000 until 2024

Tax Penalties To Be Reformed To Points Based System for VAT and Income Tax Self Assessment

  • To come into effect for VAT taxpayers from 2022/23 tax year,
  • To come into effect for taxpayers with business or property income over £10k per year from 2023/4 tax year
  • To come into effect for all others from 2024/5 tax year.

Duties

  • Alcohol duties to be frozen
  • Fuel duty to be frozen.
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