October 2021 Budget – What You Need To Know!

Chancellor Rishi Sunak presented his 2021 Budget on Wednesday 27th October 2021. The key announcements are summarised below;


  • No changes to income tax or CGT rates or allowances but deadline for reporting gains on residential property extended from 30 to 60 days for sales completed after budget day, This is good news for those clients who are in the process of a sale or planning to mitigate exposure to IHT;


  • Changes to basis periods for unincorporated entities effective for 2024/25 so regardless of the accounting date the business’s profit or loss will be that arising in the tax year, This is a major change expected to raise an additional £820 million in the first full year.
  • No announcements on pensions lifetime or annual allowances;

VAT and indirect taxation


  • Alcohol, fuel and vehicle excise duty rates have been frozen.
  • Air passenger duties will be reduced by 50% for domestic flights from 1 April 2023.
  • In wide-ranging changes to the whole regime for duties on alcohol, higher strength alcoholic drinks will attract higher duties and lower strength drinks will attract lower tax rates.
  • Draught Relief and Small Brewers’ Relief will be introduced to encourage small scale brewers and pubs.
  • Vehicle excise duties set to rise on cars, vans and motorcycles from April 2022;