Posted by James Pearson on 28 Oct 2021

2021 Autumn Budget Summary

This 2021 budget summary covers the key tax changes announced in the Chancellor’s speech and includes tables of the main rates and allowances.

Significant points

• 30-day reporting and payment deadline for CGT on UK residential property extended to
60 days for transactions completing on or after 27 October 2021
• 100% Annual Investment Allowance continues at £1m until 31 March 2023, instead of
reducing to £200,000 on 1 January 2022
• Confirmation of 1.25% increases in National Insurance Contributions (NIC) and dividend
tax rates from 6 April 2022, as well as increases in most NIC thresholds
• Residential Property Developer Tax to be introduced from 1 April 2022 at 4% on profits
over £25 million
• Reform of basis period rules for unincorporated business and LLPs from 2023/24
• Temporary reliefs for Business Rates for small businesses in 2022/23, with longer-term
reform of the system and reliefs for expenditure to be introduced in April 2023
• New late submission and payment penalty regimes to be introduced for VAT (for
accounting periods beginning on or after 1 April 2022)
• Making Tax Digital for Income Tax Self Assessment to be introduced from 2024/25,
along with a new penalty regime for late submission and payment

Here is a complete summary of the 2021 Autumn Budget

What have we covered in our round-up of the 2021 Autumn Budget?

  • Personal Income Tax

    • Tax rates and allowances – 2022/23
    • Dividend income
    • High Income Child Benefit Charge (HICBC)
  • Employees

    • National Living Wage (NLW) and National Minimum Wage (NMW)
  • National Insurance Contributions

    • Thresholds and rates
    • Ex-service personnel
  • Savings and Pensions

    • ISA Limits
    • Pension contributions
    • Taking pension benefits
  • Capital Gains Tax

    • Rates and annual exempt amount
    • Sales of UK property
  • Inheritance Tax

    • Rates
  • Business Tax

    • Reform of basis periods
    • Carry back of losses
    • Cultural tax reliefs
  • Corporation Tax

    • Capital allowances for plant and machinery
    • Research & Development (R&D)
    • Cross-border group relief
    • Uncertain tax treatments
  • VAT

    • Registration threshold
    • Reduced rate
    • Default surcharge
  • Property

    • Residential Property Developer Tax

    • Annual Tax on Enveloped Dwellings (ATED)

  • Other measures

    • Making Tax Digital (MTD) for Income Tax

    • Business rates

    • Recovery Loan Scheme

    • Apprenticeship funding

    • Alcohol duty reform

    • Universal Credit

    • Freeports

We will, of course, be happy to discuss with you any of the points covered in this report and help you adapt and reassess your plans in the light of any legislative changes.

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