On 27th October, Rishi Sunak delivered the UK’s Autumn 2021 Budget, a budget focusing on the “Post-Covid” era.
Some of the key headlines had already been announced ahead of the speech and there was no significant news on the Personal Tax front, however, here are a few key points for your consideration:
- Those selling a UK property now have 60 days (up from 30 days) to file the UK Capital Gains return and pay any Capital Gains tax.
- The National Living Wage is to increase to £9.50 per hour.
- The taper rate on the Universal Credit has reduced from 63% to 55%, allowing individuals to retain more of the credit as their income increases.
- The minimum pension age will increase from 55 to 57 from April 2028.
- Business rate discounts will continue for certain sectors still recovering from the effects of lockdown.
Although not discussed yesterday in the Autumn 2021 Budget, as a reminder:
- A 1.25% Health and Social Care levy on employment and self-employment income will apply from April 2022 – this will initially be collected by increased National Insurance Contribution rates. Note that this levy also applies to individuals above the state pension age.
- The tax rate on dividend income will also increase by 1.25% across all rate bands, i.e.:
– Basic Rate – from 7.5% to 8.75%
– Higher Rate – from 32.5% to 33.75%
– Additional Rate – from 38.1% to 39.35%
If you have any questions or would like to discuss how the Autumn 2021 Budget (or potential US tax changes) may impact your tax affairs, please do not hesitate to contact us.