The UK Autumn Budget 2021


The Autumn Budget has maintained a relatively steady ship, with no major announcements in several tax areas. Focus remains on keeping the UK a competitive place for business and encouraging innovation to lead to economic growth.

In today’s special episode on the UK Autumn Budget, we highlight what the key changes can mean for you personally and for your business:

Business Taxes

  • Residential property developer tax rate confirmed 4%
  • The annual investment allowance of £1 million will continue until March 2023
  • Enhanced and extended cultural reliefs
  • Following a consultation on the R&D tax incentive schemes, two major changes have been announced:
    • Expenditure relating to cloud computing and data will be included within eligible spend
    • The wider scheme is being reformed to better support and incentivise innovation taking place in the UK, and not that undertaken overseas.

The full details of these changes are set to be announced in late Autumn.

Income taxes & Capital Taxes

  • No major changes for income tax, CGT, or IHT were included in the Budget
  • Key change is the previously announced 1.25% increase to dividend tax rates and NIC
  • The continuing freeze on the personal allowance and income tax rate bands is likely to see more taxpayers start to exceed the personal allowance and creep into paying higher rates of tax.
  • Despite speculation that this Budget could include significant changes to CGT or IHT, announcements to capital taxes were minimal. The OTS recommended much more extensive reforms to both the CGT and IHT regimes. The Treasury has been under significant strain and is unlikely to have had the opportunity to consider these recommendations, but reform cannot be ruled out in the future. It may be worth considering what future changes could mean for you, for example, whether to accelerate the sale of assets or pass assets down to the next generation.

Head to our UK Autumn Budget hub for further analysis and commentary from the Experts at Smith & Williamson



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This episode was recorded on  1/11/2021


Tax legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice before making decisions. HMRC Tax Year 2022/23.

This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.

Podcast information:

The Pulse from Smith & Williamson

The possibility of tax reform in the UK

Episode 12

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