Budget Summary 2021 – The Big Freeze
Yesterday’s Budget delivered by Chancellor, Rishi Sunak, was met with a collective sigh of relief by tax practitioners who had perhaps feared the worst particularly in relation to capital taxes. As it turned out, the Budget was as notable for what it didn’t cover as what it did.
In a polished, confident performance, the Chancellor set out his roadmap towards economic recovery with the headline “bad” news being the rise in corporation tax to 25% with effect from 1 April 2023, though that itself was then watered down by the announcement that profits of less than £50,000 would not be taxed any higher. The good news largely came in the form of tax freezes for Income Tax, NIC, plus frozen allowances for Income Tax, Capital Gains Tax, Inheritance Tax and pensions. You can download a copy of our Budget Summary, with a complete list of the announcements here.
Head of EQ Taxation, David Morrison, commented,
“The outcome of the Budget was perhaps, happily, a bit of a damp squib and it’s fair to say that this Budget came at least one too soon for there to be radical tax changes. The government is undertaking a series of consultations into the future of taxation and we understand there may be a numbers of key focuses such as the reliefs attaching to capital taxes and getting employed and self employed people to pay the same amount of tax. With a lot of questions unanswered, there has never been a more important time to work with your tax advisers to determine the appropriate direction of travel for you and your business. Don’t delay, as you may be overtaken by events.”