2021 Autumn Budget Summary

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.

Highlights

  • A warning for asset holders as the Chancellor expects to raise £985m from freezing inheritance tax bands, £990m from freezing the pension lifetime allowance, and an extra £65m from freezing the annual exemption on capital gains tax (CGT) in 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, from 1 April 2022, was confirmed. Young people and apprentices will also see increases in the national minimum wage rates.
  • Alcohol 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 with a rate of £6.50 for 2023/24. There will be a new ultra-long-haul band, covering destinations with capitals located more than 5,500 miles from London, with an economy rate of £91.
  • The temporary £1 million level of the annual investment allowance will be extended to 31 March 2023.




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