03 November 2021

Businesses:

  • Business rates– the current system is to be retained but with some key reforms (from 1 April 2023) including increasing the frequency of revaluations to 3 years and introducing new reliefs for investment in property improvements and green technology. In addition, temporary business rates reliefs were also announced for 2022-23: a freeze in the business rates multiplier and a 50% discount for the Retail, Hospitality and Leisure sectors (capped at £110k per business).​

Employers:

  • National Living Wage – as anticipated, an increase such that employees aged 23 years and over will be entitled to £9.50 per hour for pay periods starting from 1 April 2022.
  • National Insurance Contributions (NIC)– the previously announced 1.25 percentage point increase (to fund social care prior to the introduction of the separate Health and Social Care Levy) becomes effective from 6 April 2022.


Individuals:

  • The personal allowancebasic rate and higher rate limits have been frozen at £12,570, £37,700 and £150,000 respectively until April 2026.
  • The previously announced Health and Social Care Levy and dividend tax rate increase of 1.25% comes into effect from April 2022.
  • Similarly, the IHT Nil Rate BandCGT Annual Exempt Amount and pensions lifetime allowance will be frozen until April 2026.
  • The Chancellor reiterated changes relating to the digital agenda, confirming the delay to “Making Tax Digital” for Income Tax Self-Assessment until April 2024 and giving further detail on other administrative reforms for self-employed and partners.
  • The CGT reporting and payment window following the sale of UK residential property has been extended to 60 days, from the existing 30 days, a modest yet welcome change.