Budget 2021

 


Richard Wild, Head of Tax Technical at the Chartered Institute of Taxation, assesses the annoucement of an extension to Self-Employment Income Support Scheme

John Cullinane, Director of Public Policy at the Chartered Institute of Taxation, assesses the new super deduction.

 

Peers were divided in their post-Budget debate on whether increasing corporation tax to 25 per cent was sensible or would be counter-productive. A number of opposition peers thought the Government’s tax changes insufficiently progressive and argued that wealth, inheritance and capital gains should be taxed more heavily.

Chancellor Rishi Sunak appeared in front of the Treasury Committee last week (11) as part of the committee’s inquiry into the UK Budget 2021. Dan York-Smith, Director of Strategy, Planning and Budget at the Treasury – the official with overall responsibility for the Budget - appeared alongside Sunak.

MPs have approved the March 2021 Budget Resolutions following four days of debate in the House of Commons. A report on the first two days of debate features on the CIOT website here. Below is a report on the final two days of debate, which took place on Monday and Tuesday this week (8-9 March).

In last week’s Budget the Chancellor announced that the government will be freezing the income tax personal allowance and higher rate threshold between 2022 and 2026, rather than increasing them in line with inflation, which was the previous plan.