Everything you need to know for the upcoming Autumn Budget
All eyes are on Chancellor, Rachel Reeves, as we anticipate what changes may be announced at the autumn Budget on 30th October 2024.
Countdown to the Autumn Budget on the 30th October
What we already know ahead of the Autumn Budget on the 30th October
The new government has made several commitments and ruled out certain changes.
Let’s look at what we know so far:
What’s Off the Table:
- Income Tax, National Insurance, and VAT: There’s a commitment not to increase these for “working people,” which should provide some relief for the average earner.
- Corporation Tax: It’s unlikely to rise above the current 25% rate, offering some stability for businesses.
Confirmed Changes:
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Non-Dom Status
This special tax status for wealthy individuals living in the UK but domiciled elsewhere is likely to be removed. This could significantly impact high-net-worth individuals who have benefited from this arrangement.
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Private Schools
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Property Purchases
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‘Carried Interest’
What there has been speculation about?
As the political landscape shifts, discussions about potential changes to our tax system have become increasingly prevalent. While nothing is set in stone, it’s crucial for individuals and businesses alike to understand what might be on the horizon.
Pensions
Capital Gains Tax (CGT)
Business Assets Disposal Relief
Inheritance tax (IHT)
ISA Allowances
Wealth Tax
Areas of Speculation
Inheritance Tax (IHT)
Capital Gains Tax (CGT)
Pensions
Investment Income
Business Assets Disposal Relief
- There might be adjustments to various reliefs, particularly those related to business and agricultural assets.
- The tax-free treatment of pension funds passed on death could be reconsidered.
- Rates might increase, potentially aligning more closely with income tax rates.
- The annual exemption amount could be reduced or removed entirely.
- While a “review of the pension landscape” has been mentioned, immediate major changes seem unlikely.
- Speculation about restrictions on tax-free cash has been circulating, but the government has stated they don’t intend to change this.
- There’s potential for higher taxes on investment income, which could impact dividends and interest earnings.
- This relief, which allows entrepreneurs to pay a reduced 10% CGT on qualifying business disposals, might be adjusted or capped.
These potential changes are being discussed in the context of a challenging economic environment. The government needs to increase revenue to address the “black hole” in public finances, while also stimulating economic growth. This delicate balancing act explains why many of the speculated changes focus on wealth and investment, rather than income from work.
The levels and bases of taxation, and reliefs from taxation, can change at any time.
The value of any tax relief depends on individual circumstances.
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