The Budget

The Budget

At around an hour and ten minutes in length, the Chancellor’s 2021 Autumn Budget provided us with a backdrop as to how the Government is aiming to set the UK on the right path to recovery following the events of the last year or so.

Although many thought there would be sweeping changes to various aspects of taxation in order to kick-start this process, surprisingly, there was very little said in relation to tax. The main tax-related headline announcements were:

• The basis period reform for the self-employed was confirmed and will be introduced from 6 April 2024, with transitional rules for the 2023-24 tax year being applied
• The Annual Investment Allowance, which allows businesses to claim relief for certain costs, was due to be reduced to £200,000 from 1 January 2022 but it will now remain at £1million until 31 March 2023.
• The deadline for reporting and paying capital gains tax on the disposal of residential UK property is to be extended from 30 to 60 days effective immediately
• The rules surrounding HMRC raising ‘discovery’ assessments are to be extended in relation to matter concerning child benefit recoveries, Gift Aid and some pension charges
• Research and Development tax relief for companies will be reformed from April 2023 to widen what qualifies and to focus on UK investment in this area
• Residential property development companies with net profits of at least £25million will have to pay an additional 4% corporation tax charge from April 2022
• The national/living wage will rise from £8.91 to £9.50 from April 2022

Of course, the detail behind these and other aspects of the Budget will need to be looked at more closely, and we will bring you further analysis as this becomes available.

If you have any queries about the Budget and how it might affect you, please get in touch with your usual Haines Watts contact, or myself.