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.
Wages
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)
