Despite numerous rumours of possible changes to the taxation of pensions in the run up to the budget, the Chancellor decided not to make significant changes after all. The ability to receive a 25% tax-free lump sum of up to £268,275 (or higher in some cases) remains. Individual contributions continue to attract income tax relief […]

The main rate of IHT remains at 40%, reduced to 36% for estates where 10% or more is left to charity. The IHT nil rate band will continue to be frozen at £325,000 until 2030. The additional nil rate band for passing on the family home to direct descendants (residence nil rate band) will also […]

Significant tax changes have been announced for UK resident non-domiciled individuals; namely those individuals spending most of their time in the UK but without permanently settling here. The concept of ‘domicile’ will be removed from the UK tax system and replaced by a regime based on years of tax residence. Income and capital gains taxes […]

England and Northern Ireland – thresholds It has been confirmed that the 0% thresholds for Stamp Duty Land Tax (SDLT) will be reduced from 1 April 2025 as follows:   From 1 April 2025 1 April 2024 to 31 March 2025 Main threshold £125,000 £250,000 First-time buyers’ threshold £300,000 £425,000 SDLT on additional dwellings such […]

Interest on unpaid tax liabilities From 6 April 2025, the late payment interest rate charged by HMRC on unpaid tax liabilities will increase by 1.5 percentage points. For most taxes, this will set late payment interest at the Bank of England base rate plus 4%. In conclusion As we approach 2025/26, we know a number of […]

Date What’s Due 1 November Corporation tax payment for the year to 31/1/24 (unless quarterly instalments apply) 19 November Employer PAYE & NIC deductions, and CIS return and tax, for the month to 5/11/24 (due 22/11 if you pay electronically) 1 December Corporation tax payment for the year to 29/2/24 (unless quarterly instalments apply) 19 […]

Many commentators are suggesting that the rate of CGT might be aligned with the rates of income tax, a return to the regime that applied when Gordon Brown was chancellor. Rachel Reeves is known to be a disciple of Gordon, so maybe we will see a return to taper relief as well! One would hope […]

CGT changes normally take effect from 6 April, but there have been mid-year changes in the past. This possibility has caused many taxpayers to bring forward disposals to take advantage of the current rates. The disposal date for CGT is the date of unconditional exchange of contracts and there is likely to be anti-forestalling legislation […]

Many investors may be looking to realise capital gains on their investments at the current rates, just in case there is an increase with effect from 30 October 2024. They may then wish to repurchase those investments after the change in rates to retain the balance of investments in their portfolio. Where the same shares […]

Changes to pension tax relief seems to be top of the list of possible changes in the Budget and could yield more tax revenues than changes to CGT and IHT combined. As recently as 6 April 2023, we saw the abolition of the lifetime allowance charge and a significant increase in the pension annual allowance […]