Whether it’s the budget you expected or hoped for we now know the detail of what changes the government have made in their bid to bolster the economy.
Much has been said about the deficit inherited from the previous government and what that would entail in terms of changes going forward.
McGinty Demack have analysed the major points arising from the Chancellor Rachel Reeves speech in Parlement. You can download a free copy of this and of course if you have any queries in respect to your own personal or business position please do not hesitate to contact us.
The key impacts on clients are:
- Increase in the interest rate charged on overdue tax by 1.5% in April 2025.
- Fuel Duty will not be increased as expected next year.
- Employers NIC rate to be increased by 1.2% taking it to 15%, and the starting point at which this is paid will be dropped from £9,100 to £5,000 of earnings.
- NIC Employers Allowance increased from £5,000 to £10,500
- Capital Gains Tax lower rate increased from 10% to 18%, and the higher rate from 20% to 24% from today.
- Business Asset Disposal Relief £1Mil limit to be retained, but the 10% rate will be increased to 14% next April, and 18% the year after.
- IHT Thresholds frozen for an extra 2 years until 2030, inherited pensions brought within the charge to IHT from April 2027.
- From April 2026 BPR/APR limited to £1Mil of assets, any excess value taxed at 50% of full IHT rate.
- Electric Vehicle tax incentives are to be retained until 2028.
- Business rates 2026/27 Retail/Hospitality/Leisure properties will have a new 40% relief from 2025 replacing the current temporary reliefs.
- A Corporate Tax Roadmap has been published – rate of Corporation Tax capped at 25% for the duration of this parliament, Annual Investment Allowance and Full Expensing also to be retained.
- The current Non-DOM Regime is to be removed from April 2025 and replaced by a new residency-based system.
- Stamp Duty Land Tax additional dwellings surcharge to be increased from 3% to 5% from tomorrow.
- VAT to be introduced on private school fees from January 2025, business rates relief for private schools is also to be removed from April 2025.
- Income tax and NIC thresholds freeze will not be extended with a return to inflationary increases from April 2028.
- An independent review of the Loan Charge will be commissioned.
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If you have any queries or want to know how these changes impact you or your business please contact us on:
info@mcgintydemack.co.uk or call 0800 1223 6633 and one of the team will be happy to help you.
