Omer & Company Accountants’ Post

Following yesterday’s budget we are pleased to summarise the changes for you below. As always, if you have any queries do give us a call and we will be happy to advise. Income tax The threshold at which income tax has to be paid is still frozen at £12,570 until 2028 A new ‘British ISA’ will be introduced which allows a further £5,000 tax free investment on top of the current limits, which remain unchanged (consultation on this will run until 6 June) New British Savings bond to be launched in April 2024 to offer a guaranteed rate, fixed for 3 years Dividends No changes   National insurance From April 2024 National Insurance will be cut by 2p in the pound for employees and the self-employed.  The starter rate for NI for employees will therefore drop to 8% (has been 10% from 6 January 2024) for earnings between £12,570 and £50,270 Self employed people will pay 6% on profits between £12,571 and £50,270 (previously 9%, due to be cut to 8% from 6 April 2024) Self employed people will no longer pay Class 2 NI   Corporation tax No changes   Capital Gains tax From 6 April 2024 the higher rate of CGT paid on profit from selling residential property will be cut from 28% to 24% (the lower rate remains unchanged at 18%) Inheritance tax No changes VAT The threshold at which small businesses must register to pay VAT will be raised from £85,000 to £90,000 from April 2024   Housing Stamp duty tax relief for those who purchase multiple properties in a single transaction will be abolished in June 2024 (known as multiple dwellings relief) Furnished holiday lets regime to be abolished from 6 April 2025 (incl. capital gains tax reliefs, plant and machinery capital allowances and counting profits towards earnings for pension purposes) Other From April 2024 full child benefit will be paid to households where the highest earning parent earns up to £60,000 (currently £50,000) From the same date partial child benefit is to be paid where the highest earner earns up to £80,000 (currently £60,000) The freeze on alcohol duty that was set to end in August 2024 has been extended to Feb 2025 Fuel duty is frozen again, and the 5p cut in fuel duty set to end in March 2024 has been kept for a further year A new tax on vaping products will be introduced from October 2026, linked to the levels of nicotine in the product Tobacco duty to increase by £2 per 100 cigarettes from October 2026 Non-dom tax status to be abolished from April 2025 and replaced with a new system – details yet to be given #budget2024

🌱 Spring Budget 2024: Key Highlights Chancellor Jeremy Hunt's Spring Budget addresses diverse sectors with a focus on tax changes, property investments, and family taxation. 📉 National Insurance Cuts - Class 1 employee NIC reduced from 10% to 8%, benefitting employees from April 6, 2024. - Self-employed Class 4 NIC cut from 9% to 6%, effective April 6, 2024. 🏡 Property Tax Reforms - Abolition of Furnished Holiday Letting (FHL) status tax incentives from April 6, 2025, aiming to ease housing crisis. - Reduction in higher-rate Capital Gains Tax (CGT) for residential property disposals from 28% to 24%, encouraging property sales. 👪 Family Taxation Changes - High Income Child Benefit Charge (HICBC) threshold increased to £60,000 from £50,000, with a halved rate for individuals earning £80,000. - Move to a household-based child benefit tax system from April 2026. 💼 Business and Tax Threshold Adjustments - VAT thresholds increased from £85,000 to £90,000 for registration and from £83,000 to £88,000 for deregistration from April 1, 2024. 🌍Non-domiciled status abolished, replaced by a simpler residence-based regime from April 6, 2025. 📜 Stamp Duty Land Tax Changes - Abolishment of Multiple Dwellings Relief (MDR) in England and Northern Ireland from June 1, 2024. 💰 Financial Savings and Investments - Plans for a new UK ISA to direct investments into UK assets, offering an additional £5,000 annual allowance. - Launch of a British Savings Bond by National Savings & Investments (NS&I) in April 2024. 🌱 Economic Support and Schemes - Extension of the Recovery Loan Scheme for SMEs, renamed the Growth Guarantee Scheme, until March 2026. 🚗 Fuel Duty and Alcohol Duties - Freeze on fuel duty and continuation of the 5p per litre cut for an additional 12 months. - Alcohol duties frozen until February 2025. 🚬 Tobacco and Vaping Taxes - Introduction of a new levy on vaping products from October 2026. - One-off increase in tobacco duties from October 2026. ✈️ Air Passenger Duty - Rise in Air Passenger Duty for non-economy flights from April 2025. The Spring Budget aims to stimulate economic growth, provide tax relief, and align taxation with societal and environmental goals. #SpringBudget #TaxReforms #EconomicGrowth #accountancy #Cardiff

Understanding the Financial Landscape Ahead of the General Election. As the UK gears up for the general election, the major political parties—Conservatives, Labour, and Liberal Democrats—have all pledged not to increase income tax, VAT, or National Insurance. Despite these assurances, the Institute of Fiscal Studies (IFS) warns that the next government may face significant financial challenges, potentially leading to either tax hikes or cuts in public services. Government Revenue: A Closer Look. The UK government raises and spends over £1 trillion annually. To put this into perspective, £1 trillion equates to approximately £15,000 per person in the UK or the combined value of the UK's 10 most valuable companies. Sources of Government Revenue. Income Tax: This is the largest source of revenue, accounting for about a quarter of the government's income. The Office for Budget Responsibility (OBR) forecasts that income tax will generate £303 billion in 2024/25. The income tax thresholds have been frozen until 2028, meaning more people will fall into higher tax brackets as their incomes rise with inflation. Value Added Tax (VAT): This tax on goods and services is expected to bring in £203 billion in 2024/25. National Insurance (NI): Despite a recent cut in the NI rate from 12% to 10%, it is expected to generate about £168 billion this year. Other Taxes: This category includes capital gains tax, stamp duty, and vehicle excise duty, projected to raise £115 billion this tax year. The OBR predicts that the overall tax burden will rise to a post-war high of 38% of GDP over the next five years. Government Spending Priorities Social Protection: This includes pensions and benefits for working-age individuals, making up over a quarter of all government expenditure. The OBR projects this will increase to £371 billion in 2024/25. Healthcare: Representing about a fifth of government spending, healthcare costs are driven by the UK's ageing population and rising treatment expenses. The forecast for health spending is £251 billion in 2024/25. Education: Following cuts in the 2010s, education spending is recovering, with an expected expenditure of £131 billion in 2024/25. Debt Interest: The cost of servicing the national debt has risen significantly, with an estimated spend of £109 billion in 2024/25. Conclusion As the election approaches, understanding the complexities of government finance is crucial. While promises of no new taxes are appealing, the next government will need to navigate substantial financial pressures. Keeping informed about these issues will be vital for voters and policymakers alike. The Conservative Party HM Treasury Jeremy Hunt Monty J. https://lnkd.in/gjwvcFcp #Finance #UKEconomy #GeneralElection #PublicSpending #TaxPolicy #FiscalResponsibility

Spring Budget 2024 To recap from the budget announced today, the Chancellor has put the following changes in place. Abolition of the Furnished Holiday Let tax regime – This will eliminate the tax advantage for landlords who let short-term furnished holiday properties over those who let residential properties to longer-term tenants. Effect will take place from 6 April 2025. Capital Gains Tax: higher rate cut for residential properties – From 6 April 2024, the higher rate of Capital Gains Tax for residential disposals will be cut from 28% to 24%. The lower rate of 18% will remain the same for gains falling within an individuals basic rate band. Private Residence Relief will continue to apply, meaning the majority of residential property disposals will pay no CGT. High Income Child Benefit Charge (HICBC) – The government will increase the HICBC threshold from £50,000 to £60,000. The rate at which the HICBC is charged will also be halved so that the Child Benefit is not fully withdrawn until individuals earn £80,000 or higher. The government plans to administer the HICBC on a household rather than individual basis by April 2026. National Insurance Contributions (NIC) – The government will cut the main rate of Class 1 employee NIC from 10% to 8% taking effect from 6 April 2024. The government will also make a further 2p cut to the main rate of self-employed NI on top of the 1p cut announced at Autumn Statement. This means that from 6 April 2024, self-employed NICs will be reduced from 9% to 6%. Replacing Non-UK Domicile tax rules with a residence based regime – This measure abolishes the remittance basis of taxation for non-UK domiciled individuals and replaces it with a simpler residence-based regime. Individuals who opt into the new regime will not pay UK tax on any foreign income and gains arising in their first four years of tax residence, provided that they have been non-tax resident for the last 10 years. This new regime will commence 6 April 2025 and the government will introduce transitional arrangements for existing non-doms claiming the remittance basis. The VAT threshold for small businesses increases from £85,000 to £90,000. Stay informed and plan ahead to navigate these changes effectively for your financial future. If you have any questions or need assistance in understanding how these updates may affect you, don't hesitate to contact out to us. We're here to help you every step of the way. #budget #springbudget #springbudget2024 #swansea #neath #accounting #accountants #charteredaccountants #charteredaccountant #finance #tax #nationalinsurance #childbenefit #chancellor Fran Faull Fay Cornelius Richard Chapple Ellie Hughes

Trudeau GST Tax Holiday to Cost Taxpayers $6.3 Billion Prime Minister Justin Trudeau announced a two-month GST break on some purchases and a one-time $250 rebate for all Canadians earning less than $150,000. The proposed GST break would last from December 14 to February 15. The Liberals said it would cover various things, including children’s clothing and shoes, toys, diapers, restaurant meals, and beer and wine. It also refers to real and artificial Christmas trees, snack foods and beverages, and video game systems. The move will cost taxpayers almost $4.7 billion, and the GST exemption will cost an additional $1.6 billion, totaling $6.3 Billion. The federal government is now running a significant deficit. This raises the question of who will have to foot the $6.3 billion bill for today’s one-time payments. The government will have to borrow the money, and future taxpayers must either repay it or service the additional debt perpetually. Critics argue that the GST credit is a collection of terrible ideas that will do little to lift Canada out of the long-term economic rut in which our economy is stuck. Conservative Party Leader Pierre Poilievre responded Thursday to Prime Minister Justin Trudeau’s pledge of a “GST Holiday” for Canadians, calling it a “tax trick.” Poilievre stated that the temporary exemption from the Goods and Services Tax on various ordinary commodities “would not make up for the permanent quadrupling carbon tax on heat, housing, food, and fuel.” Bloc Québécois leader Yves-François Blanchet stated he is “against any idea of a prime minister who says, ‘I will give you money in order for you to consider voting for me.'” According to the Canadian Federation of Independent Business, temporary sales tax holidays will only increase confusion and administrative burden for small business owners. A temporary sales tax decrease would help boost demand in some industries, including restaurants, Canadians, and companies, which require sustainable tax relief during the slow post-holiday season. The changes amid an inflation-driven affordability crisis have left many dissatisfied with the Trudeau government. A federal election is scheduled for before next October, although it might happen sooner if the minority government falls before then. For months, the Conservatives have held a double-digit lead over the Liberals in public opinion polls, with Leader Pierre Poilievre promising to cut taxes and government spending to restore affordability. High inflation has also pressured the Liberals to avoid proposing policies that would boost spending and raise fuel prices. According to the Fraser Institute, The Trudeau government got one thing fundamentally right: Lowering the tax burden on Canadians has benefits. Unfortunately, the policy package it has proposed to deliver tax relief is completely wrong. It lowers the incorrect taxes, moves taxes temporarily rather than lowering them, does little to improve economic incentives, and...

Autumn Budget 2024: key points at a glance Now that we are in a new political Era, the biggest budget has been released Chancellor announced the budget will raise taxes by £40bn •       From April 2025, Employers National Insurance contributions has been increased by 1.2% from 13% to 15% •       Employment allowance has increased from £5,000 to £10,000 from April 2025 •       Minimum wage for over-21s to rise by 6.7% to £12.21 from April 2025 and minimum wage threshold for 18-20 year olds will rise by 16.3% •       Lower rate of Capital Gains tax rate increased to 18% (from 10%) and higher rate to 24% (from 20%) from October 2024 •       Stamp duty land tax surcharge has increased from 3% on second homes to 5% from 31st October 2024 onwards •       Chancellor Rachel Reeves confirmed at the Budget that pensions would come under the tax to ‘make the inheritance tax system fairer’ •       Freeze on inheritance tax thresholds extended until 2030 •       40% relief on business rates for the retail, hospitality and leisure industries in 2025-26 •       VAT Exemption for private school fees to be abolished from January 2025 •       £22.6bn increase in day-to-day health budget •       NHS to receive £1.5bn for new beds, surgical hubs and scanners •       £240m to be spent on getting people back to work •       £5bn of investment to deliver housing next year •       £500m increase in road maintenance budgets next year •       Bus fare cap in England to rise to £3 until end of 2025 •       Fuel duty freeze to be extended for another year •       Non-dom tax regime will be abolished from April 2025 •       Income Tax threshold freeze will not be extended beyond 2028 •       Core school’s budget will increase by 2.3bn next year •       Cap lowered on amount taken from Universal credit allowances to pay off debts from 25% to 15% •       Windfall tax on energy giants will rise to 38% •       Rate of air passenger duty will be increased by 50% for private jets •       Flat rate duty introduced on all vaping liquid from October 2026 •       Higher HMRC Interest rates on overdue tax

Since the Autumn #Budget announcement last week, you may be analysing what these personal tax changes may mean for you and your family. After months of speculation, we found that the government did commit to their pledge of not increasing income #tax, #VAT, or National Insurance Contributions for workers, but there were definitely some interesting changes to Capital Gains Tax (CGT), Inheritance Tax (IHT) and Stamp Duty Land Tax (SDLT).   Whilst some tax rates have increased and certain reliefs have been restricted, the changes announced in this Budget seem less painful than expected. In particular, while the rates for CGT have increased, we anticipate that most people will be relieved the new rates have remained lower than the higher income tax rates. Nonetheless, we understand you may be concerned about what the changes announced on 30 October mean to you and your family. As such, Alice Johnson's article summarises the main personal tax changes on our website https://lnkd.in/e5W6VPgV

The Chancellor presented the Spring Budget on the 6th of march, outlining various tax measures aimed at fostering business investment and supporting employment through work incentives. Below is an analysis of the key announcements for your reference, along with insightful commentaries to help you gauge the potential personal impact of relevant changes. For Individuals: *Scottish taxpayers will encounter a new 45% tax rate on earned income ranging from £75,000 to £125,000, increasing to 48% thereafter, as previously declared. *The Pension Lifetime Allowance will be abolished starting April 2024, as previously planned. *A new High Income Child Benefit withdrawal threshold of £60,000 will be introduced. *Employees' Class 1 National Insurance will be reduced to 8% from April 2024. Self-Employed Class 4 National Insurance will be lowered to 6% from April 2024. *The Furnished Holiday Lettings Regime will be abolished from April 2025. *The capital gains tax rate on residential property gains will decrease to 24% effective from April 6, 2024. *A new UK ISA with an annual investment limit of £5,000 for investments into UK assets will be introduced. *Stamp Duty Land Tax's Multiple Dwellings Relief will be discontinued in England from July 2024 (with potential follow-up in Scotland under the LBTT regime). The Non-Domiciled tax status will be abolished from April 2025, introducing a new residency-based regime. Moreover, starting April 6, 2024, the Scottish income tax system will encompass six different tax rates. For Businesses: There will be no change in Corporation Tax rates, with the main rate remaining at 25% and the small company rate at 19% (for profits up to £50k). The VAT Registration threshold will increase to £90,000 and the deregistration limit to £88,000 from April 2024. The National Living Wage will rise to £11.44 from April 1, 2024, for individuals aged over 23, with corresponding increases in National Minimum Wage rates. Reforms to R&D Tax Relief will come into effect on April 1, 2024, including a new merged scheme where qualifying expenditure attracts a taxable credit of 20%, and a 14.5% payable credit remains for loss-making R&D Intensive companies. Full expensing (100% tax relief) for companies will be applicable for unlimited expenditure on plant and machinery, with consultations on extending this to assets for leasing. The Annual Investment Allowance will be set at £1 million per annum permanently, offering all businesses 100% tax relief on capital expenditure. Should you wish to delve deeper into any aspect of our Budget Briefing, we are available for further discussion over a coffee!

The devil is always in the detail, but below are some of the key announcements from The Chancellors Spring Budget. We will be following up with more detail in due course. • National insurance contributions for employees are being cut from 10% to 8% from April - impacting about 27 million workers - with savings of up to £450 a year. • Self-employed NI rates will drop by two percentage points as well. • Higher rate of property capital gains tax will be reduced from 28% to 24%. • The non-dom tax status has been abolished. It means foreign nationals who live in the UK, but are officially domiciled overseas, will no longer be able to avoid paying UK tax on their overseas income or capital gains. A "simpler" residency-based system will arrive in 2025 • Stamp duty relief for people who purchase more than one dwelling in a single transaction, known as Multiple Dwellings Relief, is scrapped. • The furnished holiday lettings regime has been abolished because it created "a distortion meaning that there are not enough properties available for long term rental by local people". • Air passenger duty will be raised for non-economy class plane passengers. • The energy profits levy - the windfall tax on UK-produced oil and gas - is extended to 2029. • The High Income Child Benefit Charge, which hits payments if one parent earns above £50,000 a year, is to move to a household-based system. The threshold will rise to £60,000 from April in the meantime. The top of the taper where it is withdrawn is raised to £80,000. • A new British ISA will allow a £5,000 annual investment into in UK businesses. It includes all the tax advantages of other ISAs and will be on top of the existing allowances. • No change to fuel duty, with 5p cut announced in March 2022 still in place. If you require any further information, then please do not hesitate to contact us on 01904 623888 or email us at contactus@yorwealth.co.uk Remember, once the tax year ends, many of the allowances that were available during that year end with it so if you can take advantage, it may be wise to do so whilst you can. The levels and bases of taxation, and reliefs from taxation, can change at anytime and are generally dependent on individual circumstances. Trusts and Taxation are not regulated by the Financial Conduct Authority. Information contained in this Guide does not constitute advice and decisions should not be made based solely on the information in this Guide. Individual advice should be sought. Fund values may fluctuate and can go down. A pension is a long term investment. Your eventual income may depend on the size of fund when accessed, interest rates and legislation. YorWealth Ltd is an appointed representative of Hexagon Wealth Limited which is authorised and regulated by the Financial Conduct Authority (FCA no.483403). The firm is registered in England and Wales No. 12938859 and its registered office is Studio 7, Forest Farm Business Park, Fulford, York, YO19 4RH

Today the Chancellor released the 2024 budget.    Here are a few key takeaways regarding taxes, duties, and investments.    Reach out to your Brooks Macdonald contact for more information or contact us at info@brooksmacdonald.com   Taxes and duties: • Income tax thresholds: Current income tax thresholds will not be frozen beyond 2028-29; they will rise with inflation from that point. • Capital gains tax: The lower rate will increase from 10% to 18%, and the higher rate from 20% to 24%. Rates on residential property remain the same. These increases take effect today, 30 October. • Employer national insurance: Employer contributions will increase by 1.2 percentage points to 15% from April 2025. • Non-dom tax regime: The non-dom regime will be abolished in 2025, replaced by a “residence-based scheme”. • Inheritance tax threshold: The freeze on the inheritance tax threshold will be extended to 2030, affecting estates over £325,000. • Stamp duty: Stamp duty on second homes will increase from 3% to 5%, effective immediately. • Windfall tax: The windfall tax on oil and gas profits will rise to 38% and will remain until March 2030; the investment allowance will be removed. • VAT on private schools: VAT will apply to private school fees starting 1 January, with business rates relief ending in April, expected to raise £1.8bn per year by 2029-30. • Air passenger duty: Air passenger duty on private jet flights will increase by 50%, equivalent to around £450 per passenger for flights to long-haul destinations.   Pensions: • Inherited pensions to be subject to inheritance tax: Pensions passed on will be subject to inheritance tax (IHT) from 2027 affecting around 8% of estates each year. Business tax/shares: • Business asset disposal relief: The relief will remain, with the rate rising from 10% this year to 14% in April 2025, and 18% in 2026-27. •AIM shares: Partial abolition of IHT relief for AIM-listed shares, with relief to be cut by 50%, meaning the IHT chargeable will be set at an effective rate of 20%, compared to 0% previously. • Business rate relief: The existing 40% business rates relief for retail, hospitality, and leisure industries will continue in 2025-26, capped at £110,000 per business. • Agricultural property relief and business property relief: Reformed from April 2026 so that 100% rate of relief will continue for the first £1 million of combined agricultural and business assets and will be 50% thereafter. #AutumnBudget #RachelReeves #FinancialPlanning #Pensions