This year the budget is combined with Covid-19 and hence it should be considered together to see the full effect.

The main points are given for simpler understanding.

  • Small firms will be refunded Sick Pay for Staff for 2 weeks.
  • Sick leave will also be available from day 1.
  • No Insurance till you earn £9,500 pa.
  • No tax till you earn £12,500 pa.
  • The tax will be 40% if you earn more than £50,000.
  • You pay Capital Gains Tax above £12,300.
  • Residential property sale CGT payable within 30 days of sale.
  • Corporation tax rate is still 19%.
  • Employment allowance is increased to £4,000 for small businesses.
  • R & D expenditure tax credit is increased from 12% to 13%.
  • Business rate discounts for pubs will be £5,000.
  • VAT registration threshold remains at £85,000.
  • Business rates abolished for one year for small businesses.
  • Firms Eligible for small business rates relief will get £3,000 cash grant.
  • The lifetime limit for entrepreneur’s relief is limited to £1m.
  • Foreign buyers of UK properties will have 2% stamp duty surcharge.
  • Loan scheme to support SME and 80% guaranteed by the Government.
  • £130m to extent Start-up loans.
  • VAT abolished for Books, Newspapers & Magazines.

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