Budget March 2021
On 3 March 2021, Rishi Sunak delivered what had been billed as “the most important business Budget in a generation”. Set against a backdrop of the Coronavirus and the economic issues it has created, the Chancellor delivered a Budget with several newsworthy tax changes (and some notable things which aren’t changing, mainly around the freezing of tax thresholds and allowances).
Some of the announcements, such as the extension of the Coronavirus Job Retention Scheme and the stamp duty land tax holiday, had been foreshadowed, but there were also plenty of items which were announced on the day.
Some key announcements include; the increased rate of corporation tax, the introduction of a super-deduction for qualifying expenditure, and the creation of eight freeports (which will benefit from potentially significant tax concessions). Please see below a summary of all the key announcements.
It’s also worth noting what wasn’t announced as part of the Budget. Despite calls for a wholesale reform of SDLT and business rates (including their replacement with a consolidated property tax), both taxes look to remain for the time being. Additionally – and breaking with tradition – consultations (other than two relating to Enterprise Management Incentives and R&D Tax) have been deferred until 23 March, as had been announced pre-Budget, meaning there are potentially still some important tax changes ahead.
We will keep you updated on these consultations, as well as other tax developments, in due course.