Spring Budget Summary
Key points from the budget include:
- Investment into innovation: A "super deduction" against tax for companies for the next 2 years that invest in plant and machinery.
- Corporation Tax: Corporation tax on company profits to rise from 19% to 25% in April 2023. Rate to be kept at 19% for companies with profits up to £50k and gradually increases to the full rate at £250k.
- Income Tax: Income tax: freezing of the personal allowance and higher rate threshold from 2022 until 2026, means we will all pay more income tax.
- VAT Cut: VAT cut for hospitality firms to be maintained at 5% until September. An interim 12.5% rate to apply for the following six months.
- Covid-19 Support: A new COVID recovery loan scheme launched offering 80% guarantees by the government. To replace the Bounceback and other coronavirus loans for businesses.
- Furlough Scheme Extension: Furlough to be extended until the end of September, and employers will be asked to contribute 10% in July and 20% in August and September.
- Introduction of Freeports: Locations of 8 new freeports to make it easier and cheaper to do business.
- Stamp Duty: Up to £500,000 “nil-rate band” for stamp duty will be extended until the end of June, with a phasing out of the relief by 1st October.
- Skills & Training: A new set of UK schemes called “Help To Grow” to include management training, plus train small businesses in digital skills.
- Retail, Leisure & Hospitality: Restart Grants for retail and non-essential businesses in April of up to £6k per premises, and for leisure and hospitality of up to £18k.
- Arts & Culture: £700m to help arts and sports venues in England, including museums and galleries re-open.
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