2021 Autumn Budget Review

The Chancellor of the Exchequer, Rishi Sunak presented his Autumn Budget on Wednesday 27 October 2021 which he termed as “a stronger economy for the British people”.

Economic update

With the economic recovery underway and COVID-19 emergency support winding down, the Budget sets out the government’s plans to ‘build back better’ over the rest of their term in Parliament. It aims to do so by investing in strong public services, driving economic growth, leading the transition to net zero as well as supporting people and businesses.

Over the last year, the government has provided £378 billion of economic support, including through support measures such as the Coronavirus Job Retention Scheme. The Office for Budget Responsibility (OBR) have revised their economic growth this year rom 4% to 6.5%. The OBR then expect the economy to grow by 6% in 2022 and 2.1% in 2023.

The easing of restrictions and the rapid return of global economic activity has led to a substantial rise in commodity and raw material prices. Alongside these global supply issues, increases in transportation and energy costs have also pushed up inflation, and the OBR expects inflation to remain high into 2022 and 2023.

Key announcements

  • 30-day reporting and payment deadline for CGT on UK residential property extended to 60 days for transactions that complete on/after 27 October 2021 (the deadline is similarly extended where non-residents dispose of other UK land and buildings)
  • High Income Child Benefit Charge is to be brought within the discovery assessment regime; this will apply retrospectively
  • National Insurance Contribution (NIC) thresholds for 2022/23 increase by 3.1%, except the Upper Earnings Limit for Class 1 and Upper Profits Threshold for Class 4, which are both frozen
  • Minimum pensions age to access private pensions increases from 55 to 57 from 6 April 2028

Budget reaction: pension update

I’ve provided a summary of the key announcements and what this means for individuals and their retirement plans:

Budget Hub

Carpenter Box have created a dedicated Budget Hub which includes a Budget Summary as well as comments from the team.

Visit the Budget Hub

We are always on hand to help manage your pensions and investments. If you would like more detailed one-to-one advice on any of the issues raised in the Budget, please get in touch with a member of our team.