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2021 Autumn Budget

Most of this budget was dedicated to spending, made possible due to increased growth,  including

  • Funding for Lorry Park Facilities
  • Foreign Aid funding to return to pre-covid levels before the end of this parliament
  • Funding for rough sleepers
  • Start of life services to be supported
  • Local transport upgrades
  • Multiply scheme – to address poor numeracy skills
  • T-levels for practical skills

There were only a few actual tax announcements, and some of those were announced beforehand

Business rates

50% discount for retail, hospitality, and leisure for 1 year capped at £110k

New relief for investment and improvements to business premises

3-year revaluations from April 2023

Consultation on a new online selling tax to level the playing field

Business Tax Reliefs

Annual Investment Allowance (AIA) for asset purchases – £1m threshold extended to March 2023

R&D (Research and development) reliefs to be extended to include cloud computing and data

R&D reliefs to be restricted to UK activities from April 2023

HMRC to target R&D abuse

Group relief for EEA subsidiaries to be restricted

Personal Tax etc

Universal credit taper for those starting to work is reduced by 8% from 63% to 55% with effect from 1stDecember

Extension of Capital Gains Tax submission deadline to 60 days from 30 days, for property sales after budget day

No changes announced to inheritance tax

No changes to Pension rules, (age for access to personal pensions to be increased to 57 from 2028)

As an anti-avoidance measure for cash businesses, taxi drivers and scrap metal dealers will need to get a tax certificate from their online tax account in order to renew their licences.


National Living wage increases 1st April 2022 to £9.50ph

Thus new Minimum wage rates from 1st April 2022 will be

    Ages Current rate New rate Increase
Over 23 £8.91 £9.50 6.60%
21-22 £8.36 £9.18 9.80%
18-20 £6.56 £6.83 4.10%
16-17 £4.62 £4.81 4.10%
Apprentices £4.30 £4.81 11.90%
Accommodation Offset £8.36 £8.70 4.10%

Note significant increases for apprentices & 21-22 year olds.


New/special taxes

Alcohol duties revamped

  • Reduced from 15 to 6 rates, based on alcohol content
  • 28% sparkling wine surtax cancelled
  • New 5% reduction for draft beer
  • New small producers’ relief
  • Planed increases cancelled

Reduced Air Passenger duty for domestic flights from April 2023, increased for long haul.

Fuel duty planned increase cancelled

New 4% cladding tax on big construction companies from April 2022

Creatives reliefs e.g. for Museums, Theatres & Orchestras, doubled for spend from budget day to March 2023 and 50% extra for following year.

Tonnage Tax reduced – a reward for those flying the Red Ensign (UK Merchant shipping flag)

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