As has been the case in recent budgets, the speculated radical changes, for example the alignment of CGT rates with income tax rates, were not forthcoming. In fact, fiscal measures were more notable by their absence from the main speech. However, the detail is always in the documentation later published on the government websites. But even here, much of the content is simply confirmation of previously announced policies, albeit with some minor changes – for example in respect of basis period reform.
Given the recently announced tax hike on companies, on National Insurance and on dividend rates, it’s perhaps not surprising that there were no Earth-shattering revelations, but it will surely go down as one of the most muted Budgets in modern times for accountants and tax advisers.
Capital allowances
The temporary increase in the annual investment allowance – to £1 million from £200,000 – is extended until 31 March 2023, coinciding with the end of the super-deduction.
National minimum wage
The recommendations of the Low Pay Commission have been accepted in full by the government. As a result, the National Minimum/Living Wage from April 2022 will be as follows:
| Rate from April 2022 | Current rate (April 2021 to March 2022) | Increase | |
| National Living Wage | £9.50 | £8.91 | 6.6% |
| 21-22 Year Old Rate | £9.18 | £8.36 | 9.8% |
| 18-20 Year Old Rate | £6.83 | £6.56 | 4.1% |
| 16-17 Year Old Rate | £4.81 | £4.62 | 4.1% |
| Apprentice Rate | £4.81 | £4.30 | 11.9% |
| Accommodation Offset | £8.70 | £8.36 | 4.1% |
