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PK Group Budget Summary 2021

PK Group have prepared a Budget summary which provides an overview of the key announcements arising from the Chancellor’s speech. Director David Truscott – Head of Accounting and Assurance, and Miranda Penny – Tax Director, delivered a breakdown of the report virtually over Teams. 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’. The Budget summary 2021 can be found here: PK Group Budget Summary March 2021

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.

If you would like more detailed, one-to-one advice on any of the issues raised in the Chancellor’s Budget speech, please do get in touch on either welcome@pkgroup.co.uk or +44 (0)20 8334 9953

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. 

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