BUDGET 2021 – KEY ANNOUNCEMENTS AT A GLANCE
• CJRS extend to 30 September 30 at up to 80% of wages or £2,500 a month. Firms must pay 10% of wages from July and 20% from 1 August.
• Fourth SEISS paid next month, at up to £7,500 or 80% of historic average profits over three months and the fifth grant will be paid in July.
• Personal allowance frozen at £12,570 until 2026.
• Income Tax 40p threshold frozen at £50,270 until 2026.
• Corporation Tax to rise from 19% to 25% in April 2023 for firms with profits over £250k. Taper for firms with smaller profits, down to the 19% rate for profits under £50k.
• Inheritance tax threshold frozen at £1m for married couples until March 2026.
• VAT threshold of £85,000 frozen for 2 years from April 2022.
• Annual exemption for CGT frozen until April 2026.
• Pensions lifetime allowance to be frozen at just over £1m until April 2026.
• Stamp Duty cut extended to June 30 by wiping out tax on home purchases up to £500,000., the threshold will be £250k between July 1 and 30 September.
• 95% mortgages to return, buyers can buy with a 5% deposit again as soon as April.
• New ‘super deduction’ when firms invest they can reduce their taxable income by 130% of the cost of the investment.
• Carry back losses of up to £2m for three years.