Key measures announced at the Spring Budget including an increase to future corporation tax rates, the super-deduction, extended loss relief and changes to interest and penalties are included in the Bill.
While the government has already consulted on a number of the clauses in Finance (No.2) Bill 2019-21 (commonly known as Finance Bill 2021) in draft legislation released on 21 July 2020 and 12 November 2020, many of the measures in the final Bill reflect the announcements made at the Spring Budget on 3 March.
The Bill includes several key Budget measures for ICAEW members, such as:
- The increase in the corporation tax rate to 25% from 1 April 2023.
- The 130% super-deduction on capital expenditure for companies.
- The extended loss carry-back provisions for losses arising in 2020/21 and 2021/22.
- Changes to the interest and penalty rules.
- The creation of Freeports.
The Tax Faculty plans to issue detailed guidance for its members on all these areas in due course.
Find out more:
- Finance Bill 2021
- Read the Tax Faculty's comprehensive summary of the Budget 2021 tax announcements.
- Read insights article "Super-deduction: an attractive measure but start planning now" (11 March)
- Read insights article: "Budget documents confirm new penalty and interest regime" (9 March)
- Read ICAEW's analysis of the Budget announcements at icaew.com/Budget.
ICAEW Know-How from the Tax Faculty
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.