Insights

Budget 2021: Our Tax Team reacts

Initial reactions to Budget 2021 from our Tax experts



“The extension of the 5% rate of VAT for hospitality business, and further interim relief of a 12.5% rate until April 2022 will be a relief to many struggling businesses in the sector.” 

Chris Riley, Head of Tax

 

“After much speculation it was confirmed today that corporation tax will be increased to 25% from 19%, from 1 April 2023. Although widely anticipated, this will come as a blow to all companies who are now facing an increase to their underlying tax base in these already challenging times, despite still being the lowest in the G7.”

Catherine Heyes, Partner   


“The extension of the SDLT holiday to July will be welcomed by those who are struggling to complete their transaction by 31 March but is not long enough to help those who are just beginning their transaction now.”

Barry Luscombe, Senior Manager   

“The doubling of the incentive paid to businesses, from £1,500 to £3,000, to hire apprentices may be enough for many to change their planned recruitment strategy for the coming years in order to benefit from this.”

Daniel Kelly, Senior Manager  
 


“It will be interesting to see if the 130% super deduction for Capital Investment works as intended. Previous attempts to stimulate investment with accelerated capital allowances have not been proven to generate investment activity beyond that which will have happened anyway.”

Chris Riley, Head of Tax

“As expected, the furlough and self employment support schemes have been extended until the end of September.”

Daniel Kelly, Senior Manager