Spring Budget 2021: Personal

Personal tax thresholds frozen until 2026

In 2021/22, the personal allowance will rise to £12,570 and the higher-rate threshold to £50,270 – but after that, both thresholds will remain frozen until 2025/26.

The same goes for the £325,000 inheritance tax threshold, the £12,300 capital gains annual tax exempt amount (£6,150 for trusts), and the £1,073,100 pensions lifetime allowance, which will remain at their current levels until 2025/26.

Stamp duty holiday extended

The current stamp duty land tax (SDLT) holiday on houses with a value of up to £500,000 was set to end on 31 March, but has been extended to 30 June 2021.

This applies to the purchases of residential properties in England and Northern Ireland only.
The Chancellor also announced the SDLT threshold will not immediately revert back to its previous level, instead reducing to £250,000 from 1 July until 30 September 2021.

From 1 October 2021, it’s set to return to £125,000.

Mortgage scheme to guarantee 5% deposits

Under a new mortgage scheme, the Government will guarantee lenders who offer mortgages to people with a deposit of 5% on homes worth up to £600,000.

All buyers under who use the scheme will be able to fix their mortgage rate for at least five years if they choose.

This will be available across the UK from April 2021 until 31 December 2022.

Talk to us for more information on the Spring Budget.

Spring Budget 2021: Business

COVID-19 support

The furlough scheme will continue in its current form until 30 June 2021, ensuring furloughed workers continue to get up to 80% of their wages for the hours not worked.

From 1 July 2021, employers will contribute towards the costs of unworked hours, starting with 10% in July, then 20% in August and September. The furlough scheme is set to end on 30 September 2021

The fourth taxable grant available through the self-employed income support scheme will cover 80% of average trading profits from February to April 2021.

Following this, a fifth and final grant will cover the period from May to September 2021. A turnover test will determine the amount of grant available and applications are expected to open in July 2021.

Self-employed people whose turnover has fallen by 30% or more will be able to claim the full 80% grant. Anyone else will be able to claim a lower grant, worth 30% of their average profits.
Business rates

Eligible retail, leisure or hospitality firms in England with rateable values of £51,000 or less will continue to pay no business rates until 30 June 2021.

From 1 July 2021, this will be followed by 66% business rates relief until 31 March 2022.
This is capped at £2m per business for properties that were forced to close on 5 January 2021, or £105,000 per business for other eligible properties.


The reduced rate of 5% VAT for goods and services supplied by the tourism and hospitality sectors has been extended until 30 September 2021.

To help these businesses manage the transition back to the standard 20% rate, a 12.5% rate will apply until 31 March 2022.

The VAT-registration and deregistration thresholds are unchanged at £85,000 and £83,000, respectively, until 1 April 2024.

Corporation tax

From April 2023, the main rate of UK corporation tax will increase from 19% to 25% on profits of more than £250,000.

The main rate of UK corporation tax for small profits of less than £50,000 will remain at 19%.
There will also be relief for limited companies with profits of less than £250,000, so they pay less than the main rate.

Talk to us for more information on the Spring Budget.