Yesterday, Chancellor Rishi Sunak delivered the Autumn 2021 Budget. And, as usual there was and is quite a lot of detail in it. But for now here’s a very brief Budget Summary of some of the main points:
Annual investment allowance extended
The Chancellor confirmed measures to support business investment with changes to allowances and Covid loans
HMRC given extra £55m to tackle evasion
HMRC will receive additional funding to boost its efforts to tackle avoidance and evasion with the specialised team to receive a multimillion boost
£468m investment in HMRC IT systems
HMRC will also receive a multimillion pound investment in IT systems as part of major modernisation. Presumably this will aid the Making Tax Digital programme.
60-day capital gains tax payment window
The current 30-day capital gains tax (CGT) payment window will be extended to 60 days which will be welcomed by residential property owners.
R&D tax relief criteria to prioritise UK-based investment
From April 2023 research and development (R&D) tax relief will be refocused onto UK based businesses.
Business rate cut for hospitality and leisure
The Chancellor announced discounts of at least 50% on business rates for retail, hospitality and leisure properties as they continues to recover from the pandemic.
Pension top-up rate for low earners
It was confirmed that a system will be introduced to make top-up payments for contributions made in 2024-25 onwards directly to low-earning individuals saving in a pension scheme using a net pay arrangement.
Alcohol duty increase scrapped plus system reform
The planned increase in duty has been scrapped and higher taxes for stronger alcoholic drinks along with lower duty on lower strength drinks announced
Air passenger duty cut for domestic flights
Plans were announced to cut the air passenger duty rate on the return leg of flights but a new higher rate for ultra long haul trips was also signalled
Residential property developer tax set at 4%
After the earlier announcement that a residential property developer tax would help pay for remedial cladding work, the Chancellor confirmed the tax will take effect from April 2022
Tonnage tax reform to open up shipping registrations
The government will introduce a package of measures to reform the tonnage tax regime from April 2022 to attract ships to register in the UK
Increase in tax relief for creative and cultural industries
The Chancellor announced tax relief of up to 50% for theatres, galleries, and other cultural organisations
Universal credit taper reduced
The taper rate on universal credit will be permanently reduced from 63% to 55%
Road tax rises except for HGVs
Road tax for HGVs will be frozen in a bid to offer support to the haulage industry but rates on all other vehicles will be increased from the 1st of April 2022
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