Goodman Jones Autumn Budget Summary 2021

1 27 October 2021 l BUDGET @ Copyright 27 October 2021. All rights reserved. This summary has been prepared very rapidly and is for general information only. The proposals are in any event subject to amendment before the Finance Act. You are recommended to seek competent professional advice before taking any action on the basis of the contents of this publication. CONTENTS Budget highlights 1 Introduction 2 Personal taxation and investments 3 Welfare and family support 6 Capital taxes 7 Business taxes 8 Value added tax 13 Tax administration 14 NICs 16 BUDGET HIGHLIGHTS ■ S ubstantial amounts of revenue over the next five years will be raised from previously announced measures, such as the freezing of tax allowances and the introduction of the Health and Social Care Levy. ■ H MRC will be able to make 20% top-up payments for 2024/25 onwards in respect of contributions made by low- earning individuals saving in a pension scheme under a Net Pay Arrangement. ■ F rom 27 October 2021, the deadline for reporting and paying CGT after selling UK residential property will increase from 30 days to 60 days after completion. ■ B usinesses will benefit from several changes to the business rates regime, including the freezing of business rates multipliers for a second year, from 1 April 2022 until 31 March 2023. ■ I ncome tax basis periods will be reformed so that a business’s profit or loss for a tax year will be the profit or loss arising in the tax year itself, regardless of its accounting date. ■ Q ualifying expenditure for tax relief on research and development will be extended to include data and cloud costs. ■ A lcohol duty will be restructured so that all beverages will be taxed in direct proportion to their alcohol content. ■ A new domestic air passenger duty band will cover flights within the UK at a rate of £6.50 for 2023/24. A new ultra-long-haul band will apply to flights to destinations with capitals located more than 5,500 miles from London, with an economy rate of £91.