Budget 2021: Farming Review
We are delighted to summarise the key announcements in the Budget 2021 statement, made on Wednesday, 3 March.
Among the key changes to note for this year are:
- The main rate of corporation tax will be increased to 25% from April 2023 for companies with profits of at least £250,000. Simultaneously, a new small companies’ rate of 19% will apply to companies with profits of up to £50,000.
- For the two years from April 2021, limited companies investing in qualifying new plant and machinery will benefit from a 130% first-year super-deduction.
- The personal allowance will rise to £12,570, and the higher rate threshold will be £50,270 for 2021/22, and both will then be frozen for the next four tax years.
- The capital gains tax annual exemption, inheritance tax rate nil rate band and pensions lifetime allowance will be frozen at their current levels until April 2026.
- The coronavirus job retention scheme will be extended in full until 30 June 2021. It will be phased out over the following three months.
- The self-employed income support scheme will also be extended at its current level with a fourth grant covering February to April. A fifth grant will cover May to September, but this will be lower for those who have seen less than a 30% drop in turnover.
The stamp duty extension and the restart grant are only for England at the moment. We are waiting for the Welsh Government to announce whether the same will apply to Wales.
If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please get in touch.