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 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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