UK Budget 2021 Tax Update

Rishi Sunak has today announced the UK budget for the financial year 2021/22. Here we have summarised some of the key points from the announcement and how they could potentially impact you and your business.

  • Corporation Tax to rise to 25% from April 2023, however the 19% rate will remain for smaller companies with a tapered rate for profits between £50,000 and £250,000 This may be offset to some extent by the new Super Deduction of 130% of qualifying expenditure on ‘investment’ in Plant and Machinery.  We will provide further detail on this once published.
  • Company losses may also be carried back three years which could enable upfront tax repayments for losses caused by Covid-19
  • Income Tax, Inheritance Tax and Pension reliefs frozen so that more people will be caught through inflation.
  • Capital Gains Tax rises which had been predicted have not taken place and the CGT annual exemption is also frozen.

Eaves and Co are a team of specialist tax advisers who offer the extensive list of services to individuals, professionals and businesses for more information on how the latest budget could potentially benefit or impact you or your business, please contact a member of our team and arrange a consultation: Contact us