Download our simple guide to the budget 

Download the Budget 2021 Rates and Allowances for 2021-22

Furlough and SEISS

  • The furlough and self-employment income support schemes have been extended until the end of September.
  • Furloughed employees will receive 80pc of their salary, but businesses will be asked to contribute to their wages from the end of July.
  • The newly self-employed in the 2019-20 financial year will now be eligible for SEISS. 
  • Apprenticeships’ cash incentive increased by £1,000 to £3,000 per head. 

Taxes

  • Corporation tax will rise from 19% to 25% in April 2023.
  • Small firms with profits under £50,000 will still pay the current 19% rate, with a taper relief up to profits of £250,000.
  • A new “super deduction” of 130% tax relief on business investment will cut taxes by 25p for every pound invested.
  • Income tax thresholds will be frozen for five years after the planned increases in April this year. This includes the Personal Allowance and the Higher Rate threshold.
  • Inheritance tax thresholds, Capital Gains Tax Annual Exemption, and the pensions lifetime allowance will also be frozen for the same period.

Property

  • A new mortgage guarantee scheme will help those with small deposits get on the housing ladder with 95% mortgages.
  • The stamp duty holiday for properties under £500,000 is extended by three months to the end of June.
  • The holiday for properties worth less than £250,000 will apply until the end of September.

Loans, Grants, Business Rates, and VAT

  • A new “Recovery loan scheme” will replace the Bounce Back and CIBILS coronavirus business interruption loan schemes.
  • Loans between £25,000 and £10m will be available with an 80% Government guarantee.
  • A £5bn Restart Grants scheme will provide firms up to £18,000 – aimed at retail, hospitality, accommodation, leisure, and personal care firms.
  • Non-essential retailers will be able to access £6,000 per business.
  • Business rates relief for the hardest-hit sectors, such as retail and hospitality, has been extended for three months in full.
  • Business rates will be discounted by two-thirds for the remaining nine months of the fiscal year.
  • The 5% VAT rate for hospitality, accommodation, and attractions will be extended until the end of September.
  • The rate will then be 12.5% until March 2022.