The Chancellor Rishi Sunak delivered his second Budget of 2021 on 26 Oct 2021 with a focus on increasing spending pledges. Here we summarise the key tax announcements.
As the major tax increases have already been announced earlier this year (increases to rates of corporation tax, NI and dividends) the Budget was extremely light on taxation measures. But the highlights are as follows:
- An overall increase in the national living and national minimum wage rates
- A further extension to the annual investment allowance, which will remain at £1 million until 31 March 2023
- Confirmation that generally unpopular basis period reform will go ahead, with the transitional year in 2023/24, and an automatic spreading mechanism
- A cut in the Universal Credit taper rate from 63% to 55%
- A 50% cut to business rates in 2022/23 for businesses in the hospitality, retail and leisure sectors
- An increase in the rate of relief for three cultural activities, including museums and galleries
- A welcome extension of the UK Property CGT reporting deadlines, from 30 days to 60 days
- The announcement that alcohol duty will be heavily simplified.
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