BSR Bespoke - 2021 Autumn Budget Summary
Posted on October 28, 2021

We have pleasure in attaching our summary of the key announcements in the 2021 Budget.

The Chancellor Rishi Sunak used the Autumn Budget 2021 to outline the government’s plans for post pandemic, post Brexit Britain.  Investing taxpayer money in long-term plans will, he believes, secure the economic future of the country. Everything from the NHS, schools, local transport and the culture and leisure sector appear set to benefit from the better-than-expected economic outlook from the Office for Budget Responsibility.

However, immediate changes to improve the finances of households and businesses increasingly worried about rising costs over the next 12 months were thin on the ground.

The key points include:

  • The previously announced freezing of tax allowances and thresholds for income tax and the introduction of the Health and Social Care Levy and dividend tax increase are due to raise large amounts of revenue over the next five years.
  • Effective immediately, the deadline for reporting and paying CGT after selling UK residential property will increase from 30 days to 60 days after completion.
  • Retail, hospitality and leisure will be eligible for a temporary £1.7 billion of business rates relief next year. The business rates multiplier will be frozen for 2022/23 so bills are 3% lower than without the freeze. From 2023, no business will face higher rates bills for 12 months after making qualifying improvements to an occupied property.
  • A 6.6% increase to the National Living Wage to £9.50 an hour, starting on 1 April 2022, was confirmed. Young people and apprentices will also see increases in National Minimum Wage rates.
  • The Annual Investment Allowance will remain at £1 million until 31 March 2023.
  • Drinks will be taxed according to their alcohol content, with higher strength products incurring proportionately more duty with a standardised set of bands.
  • The taper on Universal Credit, which has meant 63p of every £1 of benefit could end up being lost to claimants, will be cut to 55p by 1 December.

We trust that you find the enclosed Budget Summary useful and that it is a helpful basis for a discussion with us about your financial future.