Harrisons Accountancy

Welcome to the Autumn Budget 2021 Special Edition of our Tax News blog

In this edition we focus on the Chancellor’s Autumn Budget. We hope you enjoy reading our Tax News blog post and find it useful. Please get in touch if you would like to know more about any of the issues discussed in this blog post.

BUDGET AND SPENDING REVIEW

On 27 October 2021, the Chancellor delivered his third Budget in conjunction with the Public Spending Review. Many of the spending announcements had already been leaked to the Press prior to Budget Day and arguably a lot of it was not new money. The Chancellor did however manage to keep a few surprises back for Budget Day. Low paid workers will welcome the increases in the National Living Wage (NLW) that take effect from April 2022 and the 8% reduction in the Universal Credit income taper. However, the increase in the NLW in conjunction with the 1.25% increase in National Insurance Contributions (NICs) will be additional costs for employers and are likely to add to inflation. Rishi Sunak continues to have to tread a fine line between raising taxes to start paying down the massive Government borrowings but at the same time stimulate economic recovery and save jobs. The changes to tonnage tax and air passenger duty appear to be inconsistent with the goal of reducing CO2 emissions. Content accurate as at 28 October 2021

• • • NATIONAL LIVING WAGE INCREASED TO £9.50 AN HOUR
    • NO CHANGES TO INCOME TAX RATES AND PERSONAL ALLOWANCE FROZEN
    • SOME NATIONAL INSURANCE THRESHOLDS ARE CHANGING
    • “TEMPORARY” £1 MILLION ANNUAL INVESTMENT ALLOWANCE EXTENDED
    • BUSINESS RATES TO BE MADE “FAIRER” AND 50% DISCOUNT FOR THE RETAIL AND HOSPITALITY SECTOR
    • CHANGES TO R&D TAX RELIEF
    • GROUP RELIEF FOR EUROPEAN COMPANY LOSSES TO END
    • CULTURAL TAX RELIEFS DOUBLED
    • NEW RESIDENTIAL DEVELOPER TAX
    • MORE TIME TO REPORT AND PAY CGT ON RESIDENTIAL PROPERTY DISPOSAL
    • PENSION TAX RELIEF UNCHANGED
    • INDIVIDUAL SAVINGS ACCOUNT LIMITS FROZEN AGAIN
    • DIARY OF MAIN TAX EVENTS