27 October 2021Press Releases
The Chancellor of the Exchequer, Rishi Sunak, proceeded to announce the details of the 2021 Autumn Budget earlier this afternoon (27 October) providing his plans for creating a strong post-COVID economy.
This year's Autumn Budget is unusual for two reasons: It's the second of the year - there was a Budget earlier this year in the Spring - it also is on the same day as the results of the government’s spending review, detailing how it will fund public services for the next three years.
Sunak stated: "Employment is up, investment is growing, public services are improving, public finances are stabilising, and wages are rising."
Sharon Bedford, Business Tax Partner comments that: “Sunak declared he wanted to support business and announced amongst other things a welcome cut in business rates. Many businesses are however facing significant increases to their wage bill due to the increases in minimum wage and the effective hike in employers’ national insurance of 1.25% in April 2022. Companies will also have to pay increased corporation tax when the rate rises from 19% to 25% in April 2023.”
Ian Miles, Private Client Tax Partner adds: “With no changes to capital gains tax or inheritance tax, the current tax planning opportunities remain available and attractive for many entrepreneurs. For those who are currently paying capital gains taxes at 10% or 20% and have succession planning opportunities, this will come as a great relief.”
The chancellor said it will be "an economy fit for a new age of optimism,” with stronger finances and a stronger economy for the British People.
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