2024 Budget: Key Tax Changes
The 2024 Budget, delivered by Chancellor Rachel Reeves, has introduced a number of significant tax changes. Here’s a breakdown of some of the key points to be aware of:
Inheritance Tax (IHT)
Threshold Extension: The current IHT threshold of £325,000 will be extended for two more years, until 2030.
Inherited Pensions: Inherited pensions will be brought into the scope of IHT from April 2027.
Agricultural Property Relief and Business Property Relief: To be limited to £1m of relief, with further details to be announced.
National Insurance
Employer Contributions: Employers’ National Insurance contributions will increase from 13.8% to 15% from April 2025.
Threshold Reduction: The threshold at which employers start paying National Insurance on employee earnings will be lowered from £9,100 to £5,000.
Income Tax
Threshold Freeze: The current freeze on income tax thresholds will end in 2028/29. After that, thresholds will be uprated in line with inflation.
Other Changes
Capital Gains Tax (CGT): The main CGT rates will increase from 10% and 20% to 18% and 24% respectively, effective from 30 October 2024.
Important Notes
This is a summary of the key tax changes. For full details, please get in touch with us to seek advice.
Tax rules and regulations are complex and subject to change. It’s crucial to seek professional advice to ensure you understand how these changes may affect your specific circumstances.
Disclaimer: This blog post is intended for informational purposes only and does not constitute professional tax advice.
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