Employer’s national insurance increased
The Chancellor has announced that the main rate of secondary Class 1 national insurance contributions (NIC) for employers will increase by 1.2 percentage points from 13.8% to 15% from April 2025. The Class 1A and Class 1B employer rates (relating to benefits) will also increase in line with this. As well as the rate increase, […]
Capital gains tax on investment disposals
The rates of capital gains tax (CGT) payable on gains arising from assets other than residential property have been increased with immediate effect. Rates Those taxpayers who decided to accelerate planned investment disposals before the Budget in anticipation of the predicted CGT hike will be pleased with their decision. From 30 October 2024 CGT […]
Bad news for hybrid vehicles
Showing renewed commitment to promoting electric vehicles over petrol, diesel and hybrid models, the Government has extended the 100% first year allowance for zero-emission cars. Businesses and individuals can continue to deduct the full cost of zero-emission vehicles and electric vehicle charge-points from their taxable profits until 31 March 2026 for corporation tax and 5 […]
Another handbrake turn on double cab pick-ups
Reversing the previous Government’s u-turn on the tax treatment of double cab pick-ups, they will revert to being treated as cars for certain taxation purposes from April 2025. If you purchase a double cab pick-up with a payload of one tonne or more before 1 April 2025 for corporation tax, or 6 April 2025 for […]
Inheritance tax reform
The Chancellor has extended the current freeze on inheritance tax (IHT) thresholds until 2030 and announced changes to the treatment of inherited pensions and other IHT reliefs. The nil-rate band (NRB) is the amount of any estate that can be inherited tax free. It has remained at £325,000 since April 2009. If the deceased’s estate […]
SDLT: Higher Rate for Additional Dwellings increased
The stamp duty land tax (SDLT) surcharge levied on purchases of second and subsequent homes has been increased from 3% to 5% with immediate effect The higher rate applies to purchases of second homes and buy-to-let residential properties. The change applies to purchases with an effective date on or after 31 October 2024. The single […]
VAT exemption removed from private schools
Private schools will need to register for VAT and charge output VAT on education and boarding services when the exemption that currently applies is removed from 1 January 2025. All education and boarding services provided by a private school or connected person will be subject to VAT at the standard rate of 20%. Other closely […]
Non-doms regime abolished
As expected, the Chancellor has confirmed the abolition of the generous tax regime enjoyed by non-UK-domiciled individuals, or ‘non-doms’ Broadly, the current rules apply to a UK resident whose permanent home – or domicile – for tax purposes is outside the UK. These individuals do not pay UK tax on money they make elsewhere in […]
