March 10, 2021

Commercial Property Tax Holiday Extended

The measure, announced in the 3rd March 2021 Budget presentation, will help to protect 750,000 eligible businesses for another three months.

As well as this, the Stamp Duty Land Tax holiday, set to end on the 31st March, will continue until September, which may come as a relief to the 100,000 buyers currently working with residential and commercial property solicitors to help them through the conveyancing process.

Along with this, a one-off cash grant of up to £18,000 is to be made available for gyms, personal care businesses, leisure centres, accommodation and hospitality businesses, whom have been significantly affected by the pandemic.

A VAT cut for hospitality, attractions and accommodation has also been extended, meaning that businesses in these areas will have a VAT rate of 5 per cent until September, and after that a 12.5 per cent rate until march.

Other measures introduced as part of the 2021 budget include an increase in corporation tax to 25 per cent, set to take effect in 2023. Businesses who earn a profit of under £50,000 will continue to be taxed at 19 per cent, and the tax percentage gradually increases until £250,000, where the full rate is charged.

As well as this, the contactless payment limit is set to increase again from £45 per transaction to £100, which is intended to incentivise safe retail visits.