Stamp duty land tax (SDLT)
Due to COVID-19, the Chancellor previously announced a temporary increase to the nil-rate band for residential property before SDLT was due, from £125,000 to £500,000, for the period 8 July 2020 to 31 March 2021.
Budget 2021 announced a staged withdrawal of this measure by extending it to 30 June 2021, then introducing a nil-rate band of £250,000 from 1 July 2021 to 30 September 2021.
This will apply to transactions in England and Northern Ireland with an effective date between 1 April 2021 and 30 September 2021.
Mortgage guarantee scheme
A new mortgage guarantee scheme will kick in from April 2021, providing a guarantee to lenders across the UK who offer mortgages to people with a deposit of just 5% on homes with a value of up to £600,000. The scheme will be available for new mortgages up to 31 December 2022.
Late payments & late submissions
A new points-based penalty regime is coming in for regular tax return submission obligations, which will replace the existing penalties for VAT, income tax and self-assessment.
Those who persistently do not comply by missing filing deadlines will be issued fixed financial penalties of £200 once a points threshold has been breached.
If they continue to miss submission deadlines after this point, they will become liable for a further fixed-rate penalty for each additional missed obligation.
The late-payment penalty regimes across the main taxes will also be aligned, with the new late-payment penalty consisting of two separate charges.
As was previously the case, a taxpayer will not be liable to a point or penalty if they had a reasonable excuse for late filing, and will have a right to appeal against both points and penalties.
Fuel duty and short-haul air passenger duty remain unchanged, as do alcoholic duties for beer, cider, wine and spirits.
Landfill tax is charged in England and Northern Ireland on material disposed of at a landfill site.
Standard and lower rates are being increased on 1 April 2021 to £96.70 per tonne and £3.10 per tonne, respectively.
Vehicle excise duty (VED)
The Government has announced VED rates for cars, vans and motorcycles will increase in line with the Retails Prices Index (RPI) from 1 April 2021.
From 1 April 2022, the use of red diesel and rebated biofuels will be restricted to qualifying purposes only.
The measure is aimed at incentivising business to move to more energy-efficient alternatives.
The rates of duty previously announced will be consolidated into Finance Bill 2021, increasing the duty rates on all tobacco products by RPI plus 2% and on hand-rolling tobacco products by RPI plus 6% with effect from 16 November 2020.
Gross gaming yield bands for gaming duty will increase in line with inflation from 1 April 2021.
The Government will freeze the aggregates levy rate for 2021/22, but intends to return to index-linking in future.