As Rishi Sunak stood up to speak on March 3, it felt as though all the headline announcements for the Spring Budget had been leaked beforehand.
However, the Chancellor lived up to his previous statements that he would be honest with the public about where the country is, having faced the biggest economic crisis outside or wartime.
During his 50-minute speech, Mr Sunak reiterated that the level of borrowing this year and last has been unprecedented at 17.3% and 10.1% of GDP respectively.
However, with the continued vaccination rollout and the roadmap to unlock the country over coming months, there is increased optimism of a quicker than hoped for bounce back in the economy.
Here, the expert team at Thomas Westcott Chartered Accountants takes an in-depth look at the Spring Budget 2021.
Mark Tibbert, Partner and Head of Tax, picks out some of the key points from the Spring Budget, analysing the details and considering what they mean for our clients. Here are the messages that stood out:
Although we did not see an immediate increase in the headline rate of corporation tax announced in yesterday’s Budget Statement, the Chancellor did confirm changes to come into effect from 1 April 2023. Mark Tibbert looks at what is changing:
As widely anticipated, the Budget confirmed that the temporary increase in the amount that a purchaser can pay for residential property before they pay Stamp Duty Land Tax (SDLT), which was originally due to end on 31 March 2021, has been extended to 30 June 2021. Tax Partner Ian Pring explains more about the announcement:
As confirmed in last year’s Budget, an SDLT surcharge is being introduced from 1 April 2021 on non-UK residents purchasing residential property in England and Northern Ireland. Ian Pring explains more about this additional surcharge and how it can be recovered from HMRC:
During the Budget, it was confirmed the Job Retention Scheme (JRS) will be further extended to 30 September 2021. The scheme, which has been credited for preventing many job losses, was due to cease at the end of April 2021 but will now continue for an additional five months. Discover more here:
The VAT reduction was originally introduced for the hospitality and leisure industry to support businesses severely affected by the coronavirus pandemic and social distancing measures. Personal Tax Manager Annette Stone explains how the extension of the reduced rate will be a welcome measure to help the sector to bounce back and recover during the period during which it has been unable to trade:
Following a bidding process, the Budget announced the location of eight English Freeport tax sites to begin operating from late 2021, one of which is Plymouth. Tax Partner Ian Pring explains at how businesses in these tax sites will be able to benefit from a number of tax reliefs from the date that the Freeport tax site has been designated:
Ian also looks at how the Chancellor re-iterated his objective of supporting those businesses which had been most affected by coronavirus restrictions:
It was also confirmed that the fourth Self-Employment Income Support Scheme (“SEISS”) grant will be set at 80% of three months’ average trading profits, paid out in a single instalment, capped at £7,500. Partner Chris Hill explains more:
You can find all of these blogs on the Thomas Westcott website here.
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