Was it a budget for you?
Despite the many rumours beforehand, the Chancellor still managed to produce some surprises on Budget Day. Download the Spring Budget Statement here.
He chose to spend big initially, with major investment incentives for companies in the next two years. However, the widely anticipated corporation tax rise then kicks in with a vengeance – a one-off jump from 19% to 25%. Individual taxpayers did not escape paying their share either, with Mr Sunak opting for the stealth option of freezing bands, thresholds and allowances.
Key changes for the forthcoming 2021/22 tax year include:
- The personal allowance will rise to £12,570 and the higher rate threshold will be £50,270 for 2021/22
- In Scotland, the higher rate threshold for non-savings, non-dividend income will rise to £43,662 in 2021/22 as announced in the Scottish Budget.
- The NICs upper earnings limit and upper profits limit will remain aligned to the higher rate threshold at £50,270 for 2021/22
- In Wales, the exemption from stamp duty land tax on the first £500,000 of residential property value will be extended to 30 June 2021.
- The capital gains tax annual exemption, inheritance tax rate nil rate bands and pensions lifetime allowance have been frozen.
- The ISA annual subscription limit for 2021/22 will remain at £20,000 and the corresponding limit for junior ISAs (JISAs) and child trust funds (CTFs) will stay at £9,000.
- For the two years from April 2021, companies investing in qualifying new plant and machinery will benefit from a 130% first-year super-deduction.
Got budget queries or worried about tax planning? Get in touch!