Key Tourism Points 2021 Budget (03/03/2021)

General Economics of the UK - Of course underlying all this is the unprecedented level of UK National Debt.

• 700,000 people have lost their jobs and the economy shrank by almost 10% last year
• OBR forecast is for GDP to grow 4% this year, then by 7.3% in 2022, and then 1.7%, 1.6% and 1.7% in the last three years of the forecast
• Unemployment predicted to peak at 6.5%
• The government is borrowing 17% of GDP this year
• Next year borrowing will be 10.3% of GDP

 VAT - 5% rate extended for another six months followed by a 12.5% rate for a further six months  
 
UK Furlough - To be extended until the end of September at the 80% rate until July. Although from July, the government will introduce an employer contribution towards the cost of unworked hours of 10% in July, 20% in August and 20% in September.

100% exemption from Business Rates for tourism business in England until the end of June, with a 2/3s discount for the remaining 9 months (up to the value of £2m for closed businesses), we await a similar announcement from the Welsh Government?
 
SEISS - Self Employed whose turnover has fallen by 30% or more will continue to receive the full 80% grant.

• Self Employed whose turnover has fallen by less than 30% 'will therefore have less need of taxpayer support', and will receive a 30% grant.
• The 4th grant will cover February to April, worth 80% of average trading profits up to £7,500.
• A 5th grant will be available from July.

 
Contactless Payment - From today, the maximum amount that can be paid through contactless payment will be raised from £45 to £100.  
 
Extended Loss Carry Back 

• The trading loss carry-back rule will be temporarily extended from the existing one year to three years. This will be available for both incorporated and unincorporated businesses.
  • Unincorporated businesses and companies that are not members of a corporate group will be able to obtain relief for up to £2 million of losses in each of 2020-21 and 2021-22
  • Companies that are members of a corporate group will be able to obtain relief for up to £200,000 of losses in each of 2020-21 and 2021-22 without any group limitations
  • Companies that are members of a corporate group will be able to obtain relief for up to £2 million of losses in each of 2020-21 and 2021-22, but subject to a £2 million cap across the group as a whole

 Corporation Tax Rate

• This will increase to 25% on April 2023
• A Small Profits Rate of 19% will apply to businesses with a profit of over £50,000
• There will be a tapered rate between profits of £50,000 and £250,000

 
Super Investment Tax Deduction - To encourage investment, from 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will benefit from a 130% first-year capital allowance. This upfront super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest. 
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Air Passenger Duty - APD rates will increase in line with RPI from April 2022  
 
Alcohol Duty - No increases this year  
Fuel Duty - No increases this year  
 
Infrastructure Bank - A UK Infrastructure Bank will be established in Leeds with £12bn.  
  
Help to Grow: Management - The government will offer a new UK-wide management programme to upskill 30,000 SMEs in the UK over three years. The programme will be over 12 weeks, and 90% subsidised by government.