What was not included in the 2021 Budget was probably more important to private tax clients than what was included – no expected increase in CGT rates and no expected restriction of higher rate income tax relief on pension contributions.
There is a minor administration change that will help those selling residential investment properties, with an extension of the deadline for filing the related CGT return and paying this tax, from completion date +30 days to +60 days. This change will be effective from 27 October 2021 Budget day. But all in all, not much on personal tax. But don’t forget, the Chancellor had already announced:
- Freezing of the personal allowance,
- Dividend income tax rates to increase by 11/4% wef 6 April 2022,
- NIC rates to increase by 11/4% wef 6 April 2022.
Rather cleverly, this bad news was kept out of the Budget, being announced a few weeks ago, and the latter 2 increases were ‘spun’ as being specifically required to fund improved NHS and social care services.