From April 2023, the main rate of UK Corporation Tax will increase from 19% to 25% on profits of more than £250,000. The main rate of corporation tax for small profits of less than £50,000 will remain at 19%. There will also be marginal relief for limited companies with profits between £50,000 and £250,000, so that they pay less than the main rate of 25%.
A temporary extension to the loss carry back rules for trading losses for both companies and unincorporated businesses was announced. For accounting periods ending between 1 April 2020 and 31 March 2022, losses can be carried back three years rather than the current one year rule now.
To encourage and support people getting onto the property ladder. The government will guarantee lenders who offer mortgages to people with a deposit of 5% on homes worth up to £600,000.
The current SDLT holiday on residential property with a value up to £500,000 was set to end on 31 March, but has been extended to 30 June 2021. This applies to property purchases in England and Northern Ireland only.
The Bounce Back Loans and CBILS program are coming to an end. A new Recovery Loan Scheme will take their place from April. Businesses of any size can apply for the loans from £25,000 to £10m through to the end of this year. The government will provide an 80% guarantee to lenders.
From April 2021, a new grant will be available to help businesses to reopen. Non-essential retail will get £6,000 per premises. Hospitality and leisure including personal care and gyms will get £18,000 per premises.
The Universal Credit uplift of £20 per week will continue for a further six months. Working Tax Credit claimants also will be provided with equivalent support for the next six months.
Eligible retail, hospitality and leisure properties will pay no business rates for three months from 1 April to 30 June 2021. From 1 July 2021, business rates will be discounted, by a further 66% business rates relief until 31 March 2022
The reduced 5% rate of VAT for goods and services supplied by the tourism and hospitality sector has been extended to 30 September 2021. To help support businesses further there will be a transitional rate of 12.5% from 1 October to 31 March 2022 with the standard rate of 20% applying from 1 April 2022.
The fourth taxable grant will cover 80% of average trading profits, capped at £7,500. The fourth grant will take into account 2019 and 2020 tax returns and will be open to those who became self-employed in the tax year 2019/2020. Eligibility for the scheme will be based on the tax return submitted for 2019/2020 which must have been submitted by 2 March 2021.
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