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.
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