The Chancellor, Rishi Sunak delivered the budget speech on Wednesday 3 March 2021, below we summarise the key points.
- 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 exemption from stamp duty land tax on the first £500,000 of residential property value will be extended to 30 June 2021 and then replaced by a £250,000 exemption until 30 September 2021.
- The Capital Gains Tax (CGT) annual exemption, Inheritance Tax (IHT) Nil Rate Bands and the 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.
- Corporation Tax will increase from 19% to 25% for larger companies from 2023, however, for the two years from April 2021, companies investing in qualifying new plant and machinery will benefit from a 130% first-year super-deduction.
- A tax consultation will be published on 23 March 2021 which may lead to further tax increases in due course. Now is therefore the time for planning opportunities for IHT and CGT.
To download a copy of our Tax Tables for the 2021/22 tax year, updated for announcements made in the Budget on 3 March please click HERE. If you wish to save the document on the desktop of your PC or laptop, simply click save as and select desktop from the file list. You can also add to Home Screen on your phone.
