Despite the many rumours beforehand, the Chancellor still managed to produce some surprises on Budget Day. The structure of this Budget, like its predecessor, was driven by the pandemic’s impact on the economy.
As the number of people affected by Covid-19 now appears to be slowing as vaccines are rolled out, Mr Sunak was clear on the government’s intention to see out the next few months as lockdown eases with similar support for businesses and individuals. The existing pandemic schemes with which we have now become familiar – furlough, self-employment schemes, business loans and grants – have been extended through to the end of June or even beyond. He chose to spend big initially, announcing major investment incentives for companies in the next two years, adding further to the government debt mountain.
The total cost of his pandemic measures in this tax year and the next are now projected to be greater than the amount that will be raised in income tax over the same period. How the government can claw back that expenditure, while rebuilding the economy, formed the focus of the Chancellor’s speech.
Below is a summary of some of the key points discussed:
If you have any questions about how any aspects of your tax and financial planning may be affected by the Budget, please contact your Finura adviser.
Articles on this website are offered only for general information and educational purposes. They are not offered as, and do not constitute, financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional.
Past performance is not a guide to future performance and may not be repeated. Capital is at risk; investments and the income from them can fall as well as rise and investors may not get back the amounts originally invested.
You are now departing from the regulatory site of Finura. Finura is not responsible for the accuracy of the information contained within the linked site.
Global markets got off to a steady start in 2021 after the volatility of 2020.
The advent of 25% corporation tax could make incorporation a less attractive option.
The Government has published new guidance on the 130% super-deduction capital allowance, the 50% first-year allowance for qualifying special rate assets, and the new Enhanced Capital Allowances for Freeports.