Our detailed and comprehensive analysis of the budget is included in our Autumn Budget 2021 publication.
Many of the key announcements were previewed in press releases, but here are a few of the headline tax and spending announcements. If you have any queries then please do contact us.
- The Business Rates Multiplier is frozen until 31 March 2023.
- For 2022-23, eligible businesses in the retail, hospitality and leisure sector will be entitled to 50% business rates relief, capped at £110,000 per business.
- From April 2023 there are expected new reliefs in relation to property improvements and for plant and machinery used in onsite renewable energy generation and storage.
Personal income and taxes
- The National Living Wage and the National Minimum Wage will be increasing with effect from 1 April 2022. The headline National Living Wage will be £9.50 per hour.
- The Universal Credit taper rate is being reduced and, in certain circumstances, the work allowance is being increased.
- The Health and Social Care Levy will be introduced. Initially this will be as an increase of 1.25% in the main and additional rates of National Insurance Contributions for Class 1 Employee and Employer contributions, and Class 4 Self-employed contributions. The rates of income tax applicable to dividend income will also increase by 1.25%.
- High Income Child Benefit Charge is to be brought within the discovery assessment regime; this will apply retrospectively.
- The 30 day reporting and payment deadline for capital gains tax on UK residential property extended to 60 days for transactions that complete on or after 27 October 2021. The deadline is similarly extended where non-residents dispose of other UK land and buildings.
- The Corporation Tax rate increases to 25% with effect from 1 April 2023.
- The temporary Annual Investment Allowance (AIA) limit of £1 million has been extended to 31 March 2023.
- A new Residential Property Developer Tax (RPDT) will be introduced from 1 April 2022 at 4% of profits exceeding £25 million that are derived from UK residential property development.
- Employer National Insurance Contributions to also rise by 1.25% from April 2023 to help fund health and social care.
- Research and Development (R&D) tax relief will be reformed to support modern research methods, and also refocused towards innovation in the UK. Details are yet to be confirmed.
- Corporate re-domiciliation will be consulted on to make it easier for companies to re-locate to the UK.
- Annual Tax on Enveloped Dwellings (ATED) rates rise by 3.1% from April 2022.
- Reform of basis period rules for unincorporated business and LLPs is set to proceed with 2023/24 being the transitional year.
- Cross-Border Group Relief (CBGR) is abolished with effect from 27 October 2021.
- Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibition Tax Relief are being increased between 27 October 2021 and 1 April 2024.
- ‘Notification of uncertain tax treatments’ will be introduced for large businesses from April 2022, requiring businesses to tell HMRC if they take a tax position in their returns for VAT, corporation tax, income tax or PAYE that is uncertain.
- Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) to be introduced from 2024/25, with an extra year’s delay for general partnerships.
- New late submission and payment penalty regimes to be introduced for VAT from April 2022, MTD ITSA from April 2024 and other ITSA taxpayers from 6 April 2025.
- Changes to the ‘Scheme Pays’ reporting deadline from 6 April 2022, where a taxpayer wishes their pension scheme to meet an Annual Allowance tax charge above £2,000.
- Minimum age to access private pensions increases from 55 to 57 from 6 April 2028.