2021 Spring Budget review
The Chancellor of the Exchequer, Rishi Sunak, presented his Spring Budget on Wednesday 3 March and attention was focussed on measures to protect jobs in the short term and supporting the UK’s economic recovery in the long term.
The economy is forecasted to rebound in 2021 and return it its pre-Covid by mid 2022. However, 700,000 people have lost their jobs since the start of the pandemic and the UK is to borrow a peacetime record of £355bn this year. The Chancellor therefore had a difficult task in balancing the Government’s books while still investing huge sums to build the future economy.
Key announcements for individuals:
- Extensions for the job retention scheme and self-employed income support grants
- Small increase in Income Tax thresholds for 2021/22, followed by a freeze until 2025/26
- Freeze in pension scheme Lifetime Allowance, Capital Gains Tax (CGT) annual exempt amount and Inheritance Tax (IHT) nil rate band until 2025/26
- Stamp Duty Land Tax ‘holiday’ for the first £500,000 of residential property cost is extended to 30 June 2021, with a further reduction in charges up to 30 September 2021
Budget reaction: pension update
I’ve provided a summary of the Lifetime Allowance announcement and what this means for individuals and their pension plans:
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Our team are always on hand to help manage investments and pensions in these turbulent times. If you would like more detailed one-to-one advice on any of the issues raised in the Budget, please get in touch with a member of our team on 01903 534587.