BUDGET MARCH 2021
In no particular order
- 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
Extended to end September but with employer contribution in July, August and September
Support for Self Employed
- To continue until September
- To be increased to £8.91 from April 2021
- 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.
- 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
To remain at £325,000 until April 2026
- 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.
- Alcohol duties to be frozen
- Fuel duty to be frozen.