- Increase in Capital Gains Tax- lower rate increase from 10% to 18% and higher rate increase from 20% to 24%. Rates in respect of residential properties remain unchanged.
- CGT on carried interest to increase to 32%.
- 2025/2026 increase in state pension by 4.1%.
- Inheritance tax threshold frozen at £325,000 until 2030.
- Inherited pensions to be taxable to inheritance tax from April 2027.
- Non-domicile tax regime to be abolished in April 2025.
- SDLT surcharge on second homes increasing 2% to 5% from tomorrow.
- Carers allowance to increase to 16 hours per week at the minimum wage.
- Income tax thresholds from 2028 to be uprated in line with inflation.
- Reform of Business Property Relief and Agricultural Property Relief from April 2026. Combined limit of £1m at 100% then 50% taxable to IHT at 20% effective rate.
- Employer’s National Insurance contributions rise to 15% in April 2025 with threshold for payment falling to £5000.
- Fuel duty frozen for another year.
- VAT on private school fees.
- National Living Wage will rise to £12.21 next year.
How the Budget will affect each of us personally, and our businesses will differ greatly and have different legal implications. Should you wish to discuss further, please feel free to contact us on 03456 465 465 or email enquiries@rotherabray.co.uk
