Rishi Sunak delivered his second Budget on Wednesday. Despite the hype, there were limited changes on the tax front in the UK Chancellor’s Budget today. Notably, there were no changes to income tax or capital gains tax rates, whilst personal income tax allowances and thresholds are to be frozen from 2021/22 for the next 4 years. The approach to corporation tax is interesting: a significant increase in the rate from 19% to 25% over two years, albeit combined with materially enhanced relief for capital expenditure to encourage investment and relaxations of the loss relief rules for Covid hit businesses. Overall, the Budget would appear to be fairly neutral from a Crown Dependency perspective, with the increasing UK corporation tax rate potentially further enhancing the attractiveness of our Island to businesses that are owned and operated in our low tax regime.
Download our quick "on a page" guide which covers all the key measures from the 2021 UK Budget for businesses, employers and individuals.
Should you have any queries regarding the Budget, or any other tax matter, please contact a member of the team.