While tax rises were anticipated, changes will have a significant impact on businesses and individuals. The main tax measures effecting our clients in their businesses and individual capacities are summarised as follows:The threshold at which employer NICs become payable will fall from £9,100 to £5,000.
The lifetime limit for Investors’ Relief will reduce from £10m to £1m for disposals made on or after 30 October 2024, significantly limiting its financial benefit going forward.Carried interest gains made by investment managers will from 6 April 2025 be subject to CGT at a new flat rate of 32 per cent . T
Pension funds and death benefits payable from a pension into a person’s estate will be brought into a person’s estate for IHT purposes from 6 April 2027.Income tax rates will not increase, and income tax rate thresholds will be “unfrozen” and will begin to rise in line with inflation from April 2028.The Government will proceed with abolishing the non-dom tax regime with effect from 6 April 2025 and it will replace it with a residence-based regime.
A new residence-based system for inheritance tax will apply from April 2025. Inheritance tax will be due on a person’s worldwide assets on their death if they have been UK tax resident for 10 UK tax years out of the prior 20 tax years and there will be a “tail-provision” which will keep such persons within the scope of UK IHT on worldwide assets for a period after leaving the UK.
The higher rate of SDLT which may be applied to purchases of residential properties worth more than £500,000 by companies for non-commercial purposes, is to be increased from a flat rate of 15 per cent to a flat rate of 17 per cent.1 April 2025 will continue to benefit from the old rates where certain conditions are satisfied.It’s nearly time for the PowerBall and PowerBall Plus draws on Friday, 1 November 2024.