Personal & Business Tax in Spring Budget 2021 UK

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SPRING BUDGET 2021PERSONAL BUSINESS

• Morgan Reach

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Spring Budget 2021PERSONAL
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Personal Tax Thresholds Until 2026

• In 2021/22, the personal allowance will rise to
  12,570 and the higher-rate threshold to 50,270
  but after that, both thresholds will remain
  frozen until 2025/26.
• The same goes for the 325,000 inheritance tax
  threshold, the 12,300 capital gains annual tax
  exempt amount (6,150 for trusts), and the
  1,073,100 pensions lifetime allowance, which
  will remain at their current levels until 2025/26.

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Stamp Duty Holiday Extended

• The current stamp duty land tax (SDLT) holiday on
  houses with a value of up to 500,000 was set to
  end on 31 March, but has been extended to 30 June
  2021.
• This applies to the purchases of residential
  properties in England and Northern Ireland only.

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Mortgage Scheme 5 Deposits

• The Government will guarantee lenders who offer
  mortgages to people with a deposit of 5 on homes
  worth up to 600,000.
• All buyers under who use the scheme will be able
  to fix their mortgage rate for at least five
  years if they choose.
• This will be available across the UK from April
  2021 until 31 December 2022.

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Spring Budget 2021BUSINESS
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COVID-19 Support

• The furlough scheme will continue in its current
  form until 30 June 2021.
• From 1 July 2021, employers will contribute
  towards the costs of unworked hours, starting
  with 10 in July, then 20 in August and
  September.
• The fourth taxable grant available through the
  self-employed income support scheme will cover
  80 of average trading profits from February to
  April 2021.

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VAT

• The reduced rate of 5 VAT for goods and services
  supplied by the tourism and hospitality sectors
  has been extended until 30 September 2021.
• To help these businesses manage the transition
  back to the standard 20 rate, a 12.5 rate will
  apply until 31 March 2022.
• The VAT-registration and deregistration
  thresholds are unchanged at 85,000 and 83,000,
  respectively, until 1 April 2024.

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Corporation Tax

• From April 2023, the main rate of UK corporation
  tax will increase from 19 to 25 on profits of
  more than 250,000.

• The main rate of UK corporation tax for small
  profits of less than 50,000 will remain at 19.
• There will also be relief for limited companies
  with profits of less than 250,000, so they pay
  less than the main rate.

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Contact Morgan Reach

• Phone
• 0121 236 0777
• Email
• info_at_morganreach.com
• Website
• https//morganreach.com