Budget in Brief...
The Chancellor delivered her Autumn Statement this week. There has been a lot of speculation on tax in the last week or so……. Here are the key points:
For more details of the most important points, read on... |
Corporation Tax and Capital Allowances
The annual investment allowance will remain at £1m for things like qualifying plant, equipment, and vans.
Personal Tax
- The personal allowance is frozen at £12,570 until 2028;
- The point at which higher rate tax is paid remains at £50,270 – remember child benefit claw back now starts at £60,000;
- The additional (45%) tax rate will be payable on incomes of more than £125,140;
- The Capital Gains Tax rate will increase but not to align with income tax as many commentators had suggested – a maximum rate of 24% will be implemented
- Business Asset Disposal relief is an important relief for those selling small businesses. It will be retained but will increase from 10% on 6th April 2025 to 14% and then 18% - expect anti-avoidance rules for those attempting try to bring forward sales artificially
- Business and Agricultural relief will now have a £1m band applied for the purposes of Inheritance Tax and then some tax is now payable at a rate of 20% will be payable
National Insurance & Dividend TaxLarge scale changes to Employer’s National insurance were also announced:
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Minimum Wage
Increases to the rates of minimum wage were announced from 1 April 2025. Care is needed to ensure you are paying this rate (with particular attention to the increases available to younger employees) and that any pension duties are covered off with part time employees likely to come into the pension scheme threshold. There has been some high profile ‘naming and shaming’ (and resultant fines) in this area. |
National Living Wage (21 and over) £12.21 £0.77 6.7%
18-20 Year Old Rate £10.00 £1.40 16.3%
16-17 Year Old Rate £7.55 £1.15 18.0%
Apprentice Rate £7.55 £1.15 18.0%