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’.  

Key highlights

• 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
• 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
• 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

Please note that 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.

If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please speak to your relationship partner.

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