Autumn Budget 2021 - Highlights

The Chancellor’s speech included a number of tax-related measures, as well as confirming some previous announcements. In addition to these a number of other tax related measures were published today.

Autumn Budget 2021 - highlights

The main tax-related points are summarised below:

- Annual Investment Allowance on qualifying capital expenditure – current £1M limit extended to 31 March 2023

- Reporting Disposals of UK Land and Property – 30 day reporting requirement, including CGT payment, extended to 60 days, for disposals completing on/after 27 October 2021

- VAT and Second-hand Cars – new VAT refund scheme to be introduced in 2022 for second-hand cars sold in NI which are purchased in GB

- National Living/Minimum Wage increasesconfirmed – including over-23s rate increase to £9.50 per hour from April 2022

- Health and Social Care Levyconfirmed – 1.25% increase on employer, employee and self-employed National Insurance Contributions rates from April 2022; before   operating as a separate levy from April 2023, including on self-employment/employment income of individuals above state pension age

- Dividend Income Tax rate increases confirmed – rates to rise by 1.25% to 8.75% (basic rate), 33.75% (higher rate) and 39.35% (additional rate) from April 2022 (s.455 tax rate on loans to participators will also increase to 33.75%)

- Unincorporated Business Basis Period Reform - including sole traders, partnerships: businesses to be taxed on the profits of the tax year (rather than the profits of the accounting period ending in the tax year) – effective for tax year 2024/25 (i.e. from 6 April 2024) with 2023/24 as a transition year

- Taxation of Employment Income – van benefit-in-kind charge and van fuel benefit charge to increase to £3,600 and £688. Company car fuel benefit charge multiplier to increase to £25,300 – from April 2022

- Accessing Pension Savings – earliest age for accessing pensions savings without incurring unauthorised payments tax charges, to rise from 55 to 57, from April 2028

- Residential Property Developer Tax confirmed – 4% on annual profits exceeding £25M from April 2022

For an in-depth look at the announcements, you can download our Budget Analysis publication from the GMcG website from Thursday 28 October.

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For more information you can contact:

Belfast - Lyn Canning Hagan

Lisburn - Christine Harrison

Portadown - Neil Armstrong