Legal News | 30.10.24

Autumn Budget 2024

Today’s Budget included many changes to consider and plenty to digest.  For our private clients the main changes are:

• Capital Gains Tax (“CGT”)
  • Lower rate of CGT to rise from 10 – 18%
  • Higher rate of CGT to rise from 20 – 24%
    • These changes are effective from today!
  • The rates on residential property will remain at 18% and 24%
  • The rate of Capital Gains Tax that applies to Business Asset Disposal Relief and Investors’ Relief is increasing to 14% for disposals made on or after 6 April 2025 and from 14% to 18% for disposals made on or after 6 April 2026.

• Inheritance tax (“IHT”)
  • The IHT thresholds (£325,000 plus £175,000 RNRB) will remain frozen until 2030.
  • Inherited pensions will now be brought into account when calculating inheritance tax (from 2027).
    • The government will bring unused pension funds and death benefits payable from a pension into a person’s estate for inheritance tax purposes from 6 April 2027
  • Reforms to Agricultural Property Relief and Business Relief
    • The first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all.
    • But for assets over £1m, IHT will apply with a 50 per cent relief (at an effective rate of 20 per cent).
  • AIM
    • 50% relief for shares in AIMs and other similar markets.

• Non-Doms
  • The non-dom regime will be abolished.
  • Instead, Labour will introduce a new residence-based scheme with “internationally competitive arrangements” for those coming to the UK on a temporary basis.

• Stamp Duty Land Surcharge (“SDLT”)
  • There will be an increase to the stamp duty land surcharge for second homes, from 3% to 5% from tomorrow.

There will be a lot more information to follow and Wansbroughs’ newsletter tomorrow will be looking at this in more detail.