Key Tax Points from UK Budget 2024: Bite Size Summary

Our Tax Director, Tom Foster, provides a bite-sized summary of the key tax points from the UK Budget 2024. This latest budget introduces impactful tax changes that could affect both individuals and businesses. Here, Tom breaks down the essentials, giving you a clear overview of what’s changing and when. As a firm of Chartered Accountants and Tax Advisers based on the South Coast, we’re here to help you navigate these updates with ease and confidence.

 

Changes Effective Tomorrow

Increase in SDLT Surcharge
Starting tomorrow, the Stamp Duty Land Tax (SDLT) surcharge on additional property purchases will increase from 3% to 5%. This update affects individuals looking to buy second homes or investment properties and highlights the government’s efforts to moderate property investment.

When it comes to giving tax advice, I prefer to deal with knowns and certainties. Advising action based purely on rumours or potential changes can lead to unnecessary tax liabilities. That said, it’s crucial to align your tax planning with your intentions. For instance, if you weren’t already planning on selling, gifting, or investing, there’s often no sense in making hasty decisions purely out of fear of the unknown.

 

Changes Effective from April 2025

Employer National Insurance Contributions (NICs)
Employer NICs will rise from 13.8% to 15%, while the secondary (employer) threshold will reduce from £9,100 to £5,000. Small businesses will see an increase in the employment allowance, which rises to £10,500. These changes may lead to increased payroll costs for businesses, affecting budgets and hiring strategies.

Capital Gains Tax (CGT) on Non-Residential Property
The CGT rate on non-residential property gains will increase from 10% to 18% for basic rate taxpayers, and from 20% to 24% for higher-rate taxpayers. This brings CGT rates in line with residential property gains, which remain unchanged.

Business Asset Disposal Relief
Contrary to speculation, there is no immediate change to business asset disposal relief. However, from April 2025, the tax rate will increase to 14%, with further rises expected. 

 

Inheritance Tax (IHT) Adjustments

Frozen Nil Rate Bands
The nil rate bands for inheritance tax remain frozen until 2030. However, from April 2026, a £1 million cap will be introduced on 100% relief for Business Property Relief (BPR) and Agricultural Property Relief (APR). Relief on AIM holdings will be limited to 50%, and from April 2027, inherited pension funds will also be subject to IHT.

 

How We Can Help

Navigating these tax changes can be challenging, especially with new rules impacting areas like SDLT, CGT, and IHT. As a firm of Chartered Accountants and Tax Advisers, we’re here to provide personalised guidance and help you understand the key tax points from the UK Budget 2024. Whether you’re an individual, small business, or large enterprise, our team on the South Coast can help you make informed decisions to optimise your tax position and plan for the future.

Reach out to us today to discuss how we can assist you in navigating these changes efficiently.

☎️ Chichester: 01243 782 423  ☎️ Midhurst: 01730 817 243  ☎️ Whiteley: 01489 287 782

Tax Director, Tom Foster
Author Bio

Tom Foster – Tax Director

Tom is the Head of Taxation at Lewis Brownlee. Having joined the firm from a top 20 accountancy practice in March 2014. His expertise and dedication led to his promotion to Tax Director in April 2017. With over 25 years of experience as a general tax practitioner, Tom has a wealth of knowledge in assisting both individuals and businesses to manage their tax affairs efficiently and legally.

Tom’s areas of expertise include Capital Gains Tax, Inheritance Tax Planning, EMI Share Schemes, Property Taxation, Personal Tax Planning, EIS and SEIS, Trusts and Estates, Research & Development, and Tax Investigations.

Let us guide you through the details and help you prepare for what lies ahead. Contact us for expert advice on how to approach the key tax points from UK Budget 2024 tailored to your financial goals.

If you’d like to speak to one of our experts, please call 01243 782 423. Alternatively, please email us from our contact page and we will be in touch!

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