Spring Budget 2021: Personal

3 Mar 21

Personal tax thresholds frozen until 2026

In 2021/22, the personal allowance will rise to £12,570 and the higher-rate threshold to £50,270 – but after that, both thresholds will remain frozen until 2025/26.

The same goes for the £325,000 inheritance tax threshold, the £12,300 capital gains annual tax exempt amount (£6,150 for trusts), and the £1,073,100 pensions lifetime allowance, which will remain at their current levels until 2025/26.

Stamp duty holiday extended

The current stamp duty land tax (SDLT) holiday on houses with a value of up to £500,000 was set to end on 31 March, but has been extended to 30 June 2021.

This applies to the purchases of residential properties in England and Northern Ireland only.
The Chancellor also announced the SDLT threshold will not immediately revert back to its previous level, instead reducing to £250,000 from 1 July until 30 September 2021.

From 1 October 2021, it’s set to return to £125,000.

Mortgage scheme to guarantee 5% deposits

Under a new mortgage scheme, the Government will guarantee lenders who offer mortgages to people with a deposit of 5% on homes worth up to £600,000.

All buyers under who use the scheme will be able to fix their mortgage rate for at least five years if they choose.

This will be available across the UK from April 2021 until 31 December 2022.

Talk to us for more information on the Spring Budget

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