The UK Chancellor Rachel Reeves delivered her first Budget to the House of Commons, and the first Labour Budget in 14 years.
After weeks of speculation in the UK media on what fiscal measures would be taken, the Budget brought some clarity and certainty as Reeves presented her long-term plan for investment and growth.
If you are considering a move back to the UK and want a clear picture of the new tax landscape, or if you believe your tax position has changed with these new measures – our Autumn Budget summary is for you. To better understand your personal circumstances, please do get in touch with our team today.
BUDGET HIGHLIGHTS
- The main rate of class 1 employer National Insurance Contributions (NICs) will be increased from 13.8% to 15.0% with effect from 6 April 2025 and the secondary threshold at which employer NICs are payable will be reduced from £9,100 to £5,000.
- The main rates of Capital Gains Tax will increase with immediate effect to 18% for the lower main rate and 24% for higher and additional rate taxpayers. The rate for Business Asset Disposal Relief will rise to 14% for 2025/26 and 18% from 2026/27.
- Inheritance tax (IHT) business and agricultural 100% reliefs will be capped at a combined total of £1 million from April 2026. Above that, the rate of tax relief will be 50%. However, the cap will not apply to AIM shares which will only qualify for 50% relief.
- Unused pension funds and pension death benefits will form part of a person’s estate for IHT purposes from 6 April 2027.
- The additional SDLT rate for second homes and buy-to-let properties increases from 3% to 5% from 31 October 2024. The temporary increases in the 0% SDLT band for first time and other property buyers will end on 31 March 2025.
- VAT at 20% will be applied to private school education and boarding services from 1 January 2025. From 1 April 2025, charitable relief for English business rates will be withdrawn.
- Subscription limits for individual savings accounts (ISAs), Junior ISAs and Lifetime ISAs will be frozen until April 2030.
- The remittance basis of taxation will be abolished and a replacement scheme and set of measures implemented in its place.
- ‘Domicile’ will no longer bear relevance to an individual’s IHT position, with the Government legislating a residence based test
As part of The Progeny Group of companies, we would like to refer you to the Progeny UK Autumn Budget summary. Please note that clicking the link below will redirect you to the Progeny website.
Read the full report on Progeny’s website
See how the UK budget might affect you
Please Note:
The information contained within this document pertains to UK taxes, but may be relevant for those living internationally.
This article is distributed for educational purposes and should not be considered tax advice or an offer of any security for sale.
This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy or investment product.
Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.
If you are unsure about the suitability of otherwise of any product or service, we recommend that you seek professional advice.
Tax treatment depends upon individual circumstances and is based on current UK tax legislation, that is subject to change at any time.
Our UK tax services are offered from Progeny Law & Tax Limited within the UK.