With just days to go before the next budget announcement, what can you expect from Chancellor of the Exchequer, Rishi Sunak’s plans for the nation on 3 March?
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
After a challenging year, there are conflicting reports about what could possibly be announced next week. Some believe that plans to balance the country’s budget will be a priority, while others say there will be continued support while the pandemic is still putting a hold on the economy, and balancing books may take a back seat. Either way, the pandemic continues to be front and centre and we can be sure to learn which route the government is taking on 3 March.
In the meantime, here are a few hot topics that are likely to be addressed in the 2021 Budget:
Furlough Scheme – The chancellor is expected to extend the furlough scheme until the summer. It’s currently set to end in April, but it has been extended each time it’s been set to expire, so experts predict another extension during the budget announcement.
More self-employed support – More information about the fourth iteration of the self-employed income support (SEISS) grant designed to cover February, March and April will most likely be in the budget announcement despite taking place one month into the new grant period.
Stamp duty land tax holiday extension – Many field experts expect the Treasury to extend the 31 March expiration date on the current SDLT holiday. It may just mean that offers already in process will still benefit, but it could be a complete extension for another six weeks to help stimulate the market. With news of the extension coming to an end, activity slowed so it could be a big win for the housing market.
No potential tax rises – While the question still remains about how exactly the coronavirus support measures would be funded, the rumours are that any potential tax rises will be delayed until a later date if the Chancellor is focusing on recovery support rather than balancing books. If tax rises are on the table, they most likely won’t go into effect until later this year.
The budget announcement is the perfect reason to speak with your financial adviser
Keep an eye out for our Budget Statement 2021 Guide following the announcement on 3 March. You’ll receive the guide automatically if you are subscribed to our mailing list. You can subscribe here to make sure you don’t miss it.
We will also post a link on our social media channels when it becomes available.
No matter what ends up in the announcement, you may also need to review your financial plans to ensure they’re optimal with the changes bound to come from the statement, so schedule a financial review with us following the budget.
Time for a financial review?
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