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  • Writer's pictureFairfields Tax


3 March 2021



The Personal Allowance will increase to £12,570 for 2021/22 (currently £12,500), alongside an increase of the basic rate band to £37,700 (currently £37,500).

These amounts will be frozen from 2022/23 to 2025/26 leaving the higher rate threshold at £50,270 for these years (currently £50,000).

Similar freezes will apply from 2021/22 to 2025/26 for the Lifetime Allowance for pensions (£1,073,100), the Inheritance Tax nil rate band (£325,000) and residence nil rate band (£175,000) and the Capital Gains Tax Annual Exemption (£12,300).

Individual Savings Account (ISA) and Junior ISA annual subscription limits will remain unchanged for 2021/22 at £20,000 and £9,000 respectively.



The temporary extension of the Stamp Duty Land Tax nil rate band up to £500,000 will continue until the end of June, reducing to £250,000 between July and September before then reverting to the standard amount of £125,000 from 1 October 2021.

Mortgage support will be offered by the Treasury who will underwrite 95% mortgages on properties with a value up to £600,000.

As announced previously, there will be a 2% SDLT surcharge on non-UK residents purchasing residential property in England and Northern Ireland..



The rate of corporation tax will remain at 19% for the financial years beginning 1 April 2021 and 1 April 2022.

From 1 April 2023 the main rate will be set at 25% for companies with profits above £250,000. A small profits rate of 19% is available to companies with profits of £50,000 or less.

Companies with profits between £50,000 and £250,000 will be taxed at the main rate but will be able to claim marginal relief.

A 130% ‘super deduction’ will be available for investments in qualifying plant and machinery


VAT & Duties

The temporary reduced rate of VAT of 5% for the tourism and hospitality sector is extended to the end of September, after which there will be a new reduced rate of 12.5% until March when VAT will revert to the standard 20% rate.

The VAT registration and deregistration thresholds will remain frozen at £85,000 and £83,000 respectively until 31 March 2024.

Making Tax Digital for VAT will be extended to all VAT registered businesses from 1 April 2022.

Alcohol and fuel duty rates will be frozen for 2021/22.



Planned issue of at least £15 billion of green gilts to help tackle climate change, fund infrastructure projects and create green jobs.

Publication of the ‘Build Back Better: our plan for growth’ policy paper setting out the government’s plans to support economic growth through investment and their commitment to net zero carbon emissions.



Both the furlough and Self Employment Income Support schemes will continue until September.

One-off ‘Restart Grants’ of up to £18,000 will be available for hospitality and leisure businesses.

A UK-wide ‘Recovery Loan Scheme’ will make available loans of between £25,000 and £10 million to help businesses recover.


How can we help?

At Fairfields Tax we can help you navigate the changing tax landscape.

Please do contact us for a free, no obligation quote.


Tax rates and allowances are subject to Royal Assent and may differ within each of the devolved administrations of Scotland, Wales and Northern Ireland.

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