The Oct 30 Budget highlighted a commitment to boosting public service spending and investment, with an anticipated rise of approximately £70 billion annually, equaling 2% of GDP. The tax changes unveiled by the Chancellor are projected to cover more than half of this surge in public expenses, with the remainder being addressed through government borrowing.
It’s a good idea to consult tax advisors in London to understand how these updates may affect you and your business:
- The rates and thresholds for employer’s National Insurance contributions are being adjusted. This change alone is anticipated to generate £25 billion more in taxes each year.
- The rates of capital gains taxes are going up and these changes are effective immediately.
- From 6 April 2025, adjustments to the rates for Business Asset Disposal Relief will come into play.
- Inheritance tax relief updates have been targeted, affecting businesses, unquoted shares, agricultural property, unused pension funds, and death benefits, while the current thresholds for inheritance tax will stay the same until April 2028.
The Chancellor confirmed that VAT rates, income tax rates, and employee National Insurance contributions will stay the same.
However, the government will implement several measures previously suggested by Labour before the election. These include eliminating the remittance basis of taxation for individuals not domiciled in the UK, revising how carried interest is taxed, imposing VAT on private school fees, and raising the Energy Profits Levy.
For a more comprehensive understanding of the budget changes, consult with our reliable tax advisors in London at Allenby Accountants. We can assist you in navigating the complexities of taxation and help you minimize your tax liabilities while staying compliant with the latest regulations.
Email our tax advisors in London at info@allenbyaccountants.co.uk to schedule a consultation.
