Autumn Budget 2021: highlights
27th October 2021
The Chancellor Rishi Sunak delivered his Autumn Budget and Spending Review earlier this afternoon, setting out a new Charter for Budget Responsibility, alongside revised economic forecasts and spending plans.
The key tax announcements include:
- Creative tax reliefs for theatres, orchestras, museums and galleries doubled until April 2023, with rates reducing to current levels by 2024
- R&D Tax Relief:
- Scope to be expanded to include cloud computing and data costs
- Restricted to UK activity from April 2023
- Tonnage tax for shipping: amendments to favour shipping carrying a UK flag
- Air passenger duty:
- A reduced rate for internal UK flights from April 2023
- A new additional rate for long-haul flights
- Annual Investment Allowance of £1m extended to April 2023
- Business rates:
- 50% discount for the retail, hospitality and leisure sectors for 12 months
- Revaluations every three years
- 12 months exemption for business property improvements
- Investment relief for green investment
- Multiplier frozen for 2022/23
- Alcohol duty to be simplified and reformed:
- To be based on alcohol strength
- Reliefs for small producers
- Relief for draught beers and ciders
- Planned increase for spirits cancelled
- National Living Wage to increase to £9.50 per hour from April 2022
- Fuel duty: planned rate rise cancelled
- Universal Credit: taper rate to be reduced from 63% to 55% by 1 December 2021
- Capital Gains Tax on residential property: reporting deadline increased from 30 to 60 days
- A pledge to reduce taxes by the end of this Parliament
Our detailed summary will follow tomorrow morning. Please do not hesitate to get in touch with a member of our Tax team, your usual haysmacintyre contact or Katharine Arthur if you have any queries.
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