Autumn Budget 2021 – “build back better”
The Chancellor Rishi Sunak presented his third Budget on 27 October 2021. In his speech he set out the plans to “build back better” with ambitions to level up and reduce regional inequality.
There were no big surprises – the main planned tax increases to come had previously been announced and of particular note was the fact CGT and IHT rates remain unchanged, despite speculation to the contrary.
It has been recognised that the tax take in the UK as a percentage of GDP will soon reach the highest it has been since 1955. Mr Sunak stated he wants this tax rate to come down before this Government’s term in office comes to an end, which will presumably only be achievable if there are no more tax rises of significance. We shall see!
Main Budget proposals
Tax measures include:
- A new temporary business rates relief in England for eligible retail, hospitality and leisure properties for 2022/23
- A change in the earliest age from which most pension savers can access their pension savings without incurring a tax charge. From April 2028 this will rise to 57
- The retention of the £1 million annual investment allowance until 31 March 2023
- Individuals disposing of UK property on or after 27 October 2021 now have a 60 day CGT reporting and payment deadline, following the completion of the disposal.
Other measures include:
- A complete overhaul of alcohol duties that will see drinks taxed on their strength
- The cancellation of the previously announced rise in fuel duties
- Pubs supported with a reduction in draught beer and cider duty
- Increases in the National Living Wage and the National Minimum Wage rates
- An ultra-long-haul band of air passenger duty introduced.
- Some Budget proposals may be subject to amendment in the Finance Bill 2021-22. Should you need any further help or support please contact us.
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