2021 Autumn Budget Statement Summary

Chancellor Rishi Sunak presented the 2021 Autumn Budget statement yesterday in the House of Commons.

Our summary of the Budget Statement is available by clicking on the button below:

The Chancellor was distinctly upbeat and optimistic as he outlined the government’s plans for a post Covid-19 pandemic, post Brexit, Britain.

Employment is up. Investment is growing. Public services are improving. The public finances are stabilising. And wages are rising. Let there be no doubt – our plan is working” were stand out words amongst his opening delivery.

Investing money in long-term plans will, he believes, secure the economic future of the country. Everything from the NHS (an extra £44 billion announced), schools, local transport and the culture and leisure sector appear to look set to benefit, following the better than expected economic outlook announced this week from the Office for Budget Responsibility.

He announced that government department spending would increase by 3.8% a year in real terms (i.e., after inflation has been taken into account). This was much higher than expected and is what the Treasury described as “the largest increase this century”.

There were however no immediate changes to improve the finances of households and businesses who have become increasingly worried about rising costs.

Some of the highlights of the Autumn Budget 2021 were:

  • The Chancellor expects to raise £985m from freezing of inheritance tax nil rate bands, £990m
    from freezing the pension lifetime allowance and an extra £65m from freezing the annual
    exemption on capital gains tax (hereinafter referred to as CGT) in the next five years.
  • Effective immediately, the deadline for reporting and paying CGT after selling UK residential
    property will increase from 30 days to 60 days after completion.
  • Retail, hospitality and leisure will be eligible for a temporary £1.7 billion of business rates relief
    next year. The business rates multiplier will be frozen for 2022/23, so bills are 3% lower than
    without the freeze. From 2023, no business will face higher rates bills for 12 months after making
    qualifying improvements to an occupied property.
  • A 6.6% increase to the national living wage to £9.50 an hour, from 1 April 2022, was confirmed.
    Young people and apprentices will also see increases in the national minimum wage rates.
  • Alcohol duty will be restructured so that all beverages will be taxed in direct proportion to their
    alcohol content.
  • A new domestic air passenger duty band will cover flights within the UK with a rate of £6.50 for
    2023/24. There will be a new ultra-long-haul band, covering destinations with capitals located
    more than 5,500 miles from London, with an economy rate of £91.
  • The temporary £1 million level of the annual investment allowance will be extended to
    31 March 2023.

We hope you find the issue of this Budget summary to be useful. If you have any questions about the attached summary’s contents, or indeed have any queries about how any aspects of your own personal tax or financial planning may be affected by the Budget, then please do not hesitate to call us. We would be pleased to hear from you.

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