Companies House
News - Budget
3 March 2021
Budget 2021 highlights
Below are the highlights from the 2021 budget. We will be putting out additional information shortly.
The furlough extended until the end of September 2021. For employees, they will receive 80% for hours not worked. As businesses reopen, employers will be asked to contribute 10% from July and 20% for August and September.
There will be a 4th and 5th self-employed grant. The 4th grant will be 80% of average trading profits covering February till April. The 5th grant will be the final grant and be available from July. Newly self-employed can now claim the 4th & 5th grant if they have submitted their 2019/20 tax return by 28/02/21
There will be restart grants available for non-essential businesses opening in April, up to £6k per premises. For Hospitality and Leisure businesses there will be up to £18k grants available when they come to reopen.
Recovery loan scheme, for loans between £25k – £10m will be available until the end of the year. The Government will guarantee these up to 80%.
Business rates will not be payable between April and June. For the remaining 9 months of the year they will be discounted up to two thirds.
For hospitality and tourism businesses the 5% reduced rate of VAT will be extended for 6 months. From 1st October 2021 there will be an interim rate of 12.5% before returning to the standard from April 2022.
Stamp duty holiday extended until 30th June, when the nil rate band will reduce to £250k until the end of September.
The personal tax threshold has been frozen from April 2021 when it will increase to £12,570 and remain at that until April 2026. For the higher rate threshold has also been frozen, it will increase in April 2021 to £50,270 and remain at that until April 2026.
IHT, VAT, pension thresholds and CGT annual exemption will all remain the same.
From April 2023 Corporation Tax will increase to 25%. For companies with profits of £50k and under they will be taxed at 19%. There will be tapered rates for profits above £50k up to £250k. Profits above £250k will be charged at the full 25%.
Tax treatment of losses is changing. Losses of up to £2m can be carried back up to 3 years.
For the next two years, companies can reduce their tax bill with Super Deduction of 130% of the costs for Business Investment.
All alcohol duties are frozen.
Fuel duty frozen.
