Introduction

The Chancellor Rishi Sunak presented his second Budget on Wednesday 3 March 2021. In his speech he stated his Budget 'meets the moment with a three-part plan to protect the jobs and livelihoods of the British people'.

Main Budget proposals

Tax measures include:

• a super-deduction for companies investing in new plant and machinery
• a time extension of the temporary increase to the SDLT nil rate band for residential property in England and Northern Ireland
• an extension to the temporary 5% reduced rate of VAT for certain supplies
• a temporary increase in the carry-back period for business losses
• an increased rate of corporation tax from 2023.

Other measures include:

• a new mortgage guarantee scheme
• extension to the Job Retention Scheme
• a Self-Employment Income Support Scheme fourth and fifth grant
• an extension to the business rates holiday in England.

Previously announced measures include:

• a cap on the amount of R&D tax credit paid to a loss-making small or medium-sized enterprise
• new rules apply to off-payroll working payments made for services provided on or after 6 April 2021.

Some Budget proposals may be subject to amendment in the 2021 Finance Act. You should contact us before taking any action as a result of the contents of this summary.