Budget - 3 March 2021

The following are the main points from the March 2021 Budget. We will be providing clients with a full summary of the various measures announced today.

Coronavirus support measures

  • Government to continue paying 80% of furloughed employees' wages for hours they cannot work
  • Employers to be asked to contribute to furlough pay - 10% in July and 20% in August and September
  • Support for the self-employed also to be extended until September (SEISS)
  • 600,000 more self-employed people will be eligible for help as access to grants is widened

Income and capital taxes

  • No changes to rates of income tax, national insurance or VAT
  • Tax-free personal allowance to be frozen at £12,570 from April 2021 levels to 2026
  • Higher rate income tax threshold to be frozen at £50,270 from April 2021 levels to 2026
  • Corporation tax on company profits above £250,000 to rise from 19% to 25% in April 2023
  • Rate to be kept at 19% for smaller companies with profits of less than £50,000
  • Stamp duty holiday on house purchases in England and Northern Ireland extended to 30 June
  • Inheritance tax thresholds, pensions lifetime allowances and annual capital gains tax exemptions to be frozen at 2020-2021 levels until 2025-26
Business investment and VAT

  • Firms will be able to use the "super-deduction" to deduct investment costs from tax bills, reducing taxable profits by 130% through capital allowances.
  • Incentives for firms to take on apprentices to rise to £3,000 and £126m for traineeships
  • Lower VAT rate for hospitality firms to be maintained at 5% rate until September
  • Interim 12.5% rate will then apply for the following six months
Other measures
  • Minimum wage to increase to £8.91 an hour from April
  • Contactless payment limit will rise to £100 later this year

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