Budget 2021 summary

Produced by Tolley
Budget 2021 summary

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Budget 2021 summary
  • Introduction
  • Personal tax
  • Rates and allowances for 2021/22
  • Income tax exemption for certain financial support payments
  • Social Investment Tax Relief (SITR)
  • Relief for gifts of business assets
  • Individual savings accounts and child trust funds
  • Employment tax
  • Coronavirus (COVID-19)-related measures
  • More...

Introduction

‘Events, dear boy, events’, the words (allegedly) of Harold Macmillan when asked what was most likely to knock Governments off course. So this is the Budget that was meant to take place last autumn but here we are in early spring. The second year in succession this has happened, though for different reasons (Brexit last time). It appears that the last Budget to have occurred earlier than this in a calendar year was that of William Gladstone on Friday 10 February 1860. The speech included the following gems: ‘The assessment will be 10d [4p] in the pound on incomes above £150, and 7d [3p] in the pound below that amount’, and ‘Instead of the old system, under which only half the [year’s income tax] was collected within the year … we shall require three quarters to be actually collected’. No mention of any late payment penalties though!

So the CJRS is extended until September. They may just as well furlough the yellow brick road. Who knows, perhaps there will be a financial wizard at the end of it. Meanwhile, stamp duty continues to get holidays while humans do not.

With so many of the Budget changes having been widely floated in advance in the media, much of the interest today may be in the things we did not already know about: for example, for companies, the new super-deduction providing allowances of 130%, or else the first year allowance of 50%, on new plant and machinery. Also of interest is the introduction of a new (but long-awaited) points-based penalty regime for tax return filing obligations, which will replace existing penalties for VAT (from April 2022) and income tax self assessment (from April 2023 in most cases).

Today is not the end of the story, as we are promised consultation documents on as yet unspecified future tax changes on 23 March. Folk are currently calling it ‘Tax day’, but please let this be the start of a campaign

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