Budget Report 2021

The Chancellor, Rishi Sunak, set out the Government’s tax and spending plans for the year ahead, announcing further support for jobs and businesses through to autumn, and beyond. With the freezing of many tax thresholds and allowances, the Chancellor is relying on fiscal drag and an earlier than hoped economic recovery to begin to balance the books and plan for the future.

Many key tax decisions have been postponed for now, save for an increase to the headline Corporation Tax rate to 25% from April 2023, and the introduction of a ‘super-deduction’ of 130% for qualifying capital spend by businesses. Companies will also welcome the enhanced ability to carry back losses to access repayments of tax from earlier this year.

Our Budget summary provides an overview of the key announcements arising from the Chancellor’s speech, and how they are likely to impact your business and personal finances.

We expect there are more changes to come. HMRC will publish a Command Paper on 23 March, with details of a number of consultations.

As we begin to dare hope of a return to a semblance of normal life as COVID-19 restrictions are eased, I hope you, your family and colleagues are well.

You can download our full summary below. Please get in touch with your usual haysmacintyre contact or any member of the Tax team, if you have any queries.

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