CGT - Its ALL FROZEN! Which is great news
I still think ISA limits should go up even just a small amount to match inflation 
so that those of us without Flexible ISA’s and with a slightly better year may be able to grow our savings just that bit quicker.
They also Froze Fuel and Booze Duty which will also help Pubs and Petrol stations. 
Pretty good budget overall imo, frozen income tax thresholds obviously aren’t great but at least they weren’t cut
indeed, seeing cuts is the last thing we need after and during pandemic lockdowns 
Yeah no big shocks as expected a corporation tax increase, but its good and fair I think they will taper it like income tax so small companies/individuals as ltd comps stay 19% with bigger ones paying up to 25%.
Wonder how this impacts the UK stocks short/long term. Anyone in the game long enough to know what big increases in this tax on businesses does? As in a simple way it will reduce cash after tax, so would this mean income/dividend stocks impacted more than high growth stocks?
2 Likes
Very happy with the budget 2021. Well done Mr. Sunak !
With corporation tax growing from 19% to 25% in 2023 this should have a negative impact on UK stock prices, cause it’s cutting the profits by 6% …
Still, we have 100 problems now, so 2023 ain’t one of them … we’ll worry about that when the time is near 
glta
1 Like
From my limited experience on learning Tax, Businesses try to adapt when it happens and tend to borrow more money whilst the Interest is very low to accomodate the lowered profits, but it sometimes does mean that they have to reduce the workforce if they cannot meet their target revenue.
Companies with low profits definitely are impacted by this and the Share Price will likely lower.
Established companies usually weather the Tax Hikes very well but Stocks still go down on the assumption the Profits are lowered.
Any new Company not used to raises in Corporation Tax struggle a little bit as they tend to not build up a decent amount of Cash. Investments are usually done to lower the amount of Tax paid so this could be a good sign with the combination of a Tax Hike Preperation and Super Low Interest Rates to Invest it and lower their Tax Payments.