Doesn’t it feel like a distant memory, when Chancellor Rachel Reeves unveiled significant changes to pensions, capital gains tax, and more in her Autumn Budget on 30th October?
By now, hopefully, the details of these changes—and how they may impact you personally or as a business—are clear and well-understood. However, if you’re still uncertain or would simply like a quick refresher, here’s a brief summary of the key updates:
Individuals:
- Pensions to become part of your estate for Inheritance Tax purposes from April 2027.
- Capital Gains Tax rates increased immediately to 18% and 24% for basic and higher rate taxpayers.
- ISA deposit thresholds frozen until 2030.
- Private school fees subject to 20% VAT from 1 January 2025.
Businesses:
- Employers National Insurance to rise to 15% from April 2025.
- The national minimum wage is set to rise from April 2025.
- Business Property Relief (formerly Entrepreneurs Relief) will increase from 10% to 14% in April 2025, then to 18% in April 2026
- Inheritance Tax Relief for Business and Agricultural assets will be capped at £1m, with a new reduced rate of 20% being charged on assets above.
Property:
- Stamp Duty rates for second homes rising from 31st Oct
- Stamp duty changing AGAIN in April 2025.
- Right to Buy discount to be cut.
- £500 million for 5,000 affordable social homes.
- More people will be able to get unbeatable 50% bonus using Help to Save.
General:
- Income and National Insurance thresholds remain frozen until 2028.
- State Pension confirmed to rise by 4.1% in April 2025.
- Benefits to rise by 1.7% with other changes announced.
- The Carer’s Allowance earnings limit will increase by over £45 a week.
- Rail fares to increase by 4.6% and most Railcards to go up by £5.
- A cap on bus fares is extended but will rise to £3 from 2025.
- Cigarettes, vapes, booze, flights – new taxes and tax cuts.
At Active Chartered Financial Planners, we’re always here to help you navigate the ever-changing world of financial planning. If you would like to discuss your current situation, please don’t hesitate to get in touch.
Contact us today on 01642 765957 OR info@activefp.co.uk
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