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Here's a summary of the key points from the October 2024 UK Budget for small businesses and individuals: Tax Increases and Wage Adjustments Overall Tax Rise: A projected increase of £40 billion in taxes. Minimum Wage Increases: For over-21s: Rise from £11.44 to £12.21 per hour (6.7% increase). For ages 18-20: Rise from £8.60 to £10.00 per hour (16.3% increase). For ages 16-17 and apprentices: Rise from £6.40 to £7.55 per hour. State Pension: Set to increase by 4.1% in the 2025/26 fiscal year. National Insurance and Employment Allowances Employer National Insurance: Increase of 1.2%, bringing it to 15%. Threshold: Reduced from £9,100 to £5,000. Employment Allowance: Increased from £5,000 to £10,500, providing tax relief for smaller employers. Fiscal Drag and Income Tax Thresholds Fiscal Drag: Continued freezing of income tax thresholds will push more taxpayers into higher tax bands until 2028/29, when adjustments will be made in line with inflation. Income Tax, Employee NI, and VAT: Rates remain unchanged. Capital Gains and Business Asset Disposal Relief Capital Gains Tax effective 30/10/2024 Lower rate: Rising from 10% to 18%. Higher rate: Increasing from 20% to 24%. Residential property gains remain taxed as before. Business Asset Disposal Relief: Lifetime limit retained at £1 million. Tax rate rising from 10% to 14% in 2025, then to 18% in 2026. Inheritance and Property Taxes Inheritance Tax: Threshold held at £325,000 until 2030, with inherited pensions now subject to inheritance tax. Stamp Duty Land Tax (SDLT): Increase to 5% for second homes, effective immediately. Electric Vehicles and Company Cars Electric Vehicle Tax: Company car tax rates maintained until 2028, incentivizing EV use. Business Rates 2025/26: Introduction of a new 40% reduction rate, capped at £110,000. However, businesses may lose their current 75% discount. Higher-Value Properties: Subject to increased tax rates. Hospitality and Retail: Reduced rates in 2026/27 to support these sectors. Corporation Tax and Investment Allowances Corporation Tax: Capped at 25%, with “full expensing” preserved. Annual Investment Allowance: Set at £1 million, encouraging business investments. Other Notable Changes VAT on Private School Fees: Introduced from January 1, 2025. Non-Dom Tax Regime: Removal of non-dom status in favor of a residence-based tax scheme. 100% First Year Allowance (FYA): Maintained for capital expenditures. The government hinted at "hard decisions to come" for public service funding, potentially signaling further tax measures in the future.

Kindly shared by Brad Walker if anyone has missed October budget today 👇 Here's a summary of the key points from the October 2024 UK Budget for small businesses and individuals: Tax Increases and Wage Adjustments Overall Tax Rise: A projected increase of £40 billion in taxes. Minimum Wage Increases: For over-21s: Rise from £11.44 to £12.21 per hour (6.7% increase). For ages 18-20: Rise from £8.60 to £10.00 per hour (16.3% increase). For ages 16-17 and apprentices: Rise from £6.40 to £7.55 per hour. State Pension: Set to increase by 4.1% in the 2025/26 fiscal year. National Insurance and Employment Allowances Employer National Insurance: Increase of 1.2%, bringing it to 15%. Threshold: Reduced from £9,100 to £5,000. Employment Allowance: Increased from £5,000 to £10,500, providing tax relief for smaller employers. Fiscal Drag and Income Tax Thresholds Fiscal Drag: Continued freezing of income tax thresholds will push more taxpayers into higher tax bands until 2028/29, when adjustments will be made in line with inflation. Income Tax, Employee NI, and VAT: Rates remain unchanged. Capital Gains and Business Asset Disposal Relief Capital Gains Tax: Lower rate: Rising from 10% to 18%. Higher rate: Increasing from 20% to 24%. Residential property gains remain taxed as before. Business Asset Disposal Relief: Lifetime limit retained at £1 million. Tax rate rising from 10% to 14% in 2025, then to 18% in 2026. Inheritance and Property Taxes Inheritance Tax: Threshold held at £325,000 until 2030, with inherited pensions now subject to inheritance tax. Stamp Duty Land Tax (SDLT): Increase to 5% for second homes, effective immediately. Electric Vehicles and Company Cars Electric Vehicle Tax: Company car tax rates maintained until 2028, incentivizing EV use. Business Rates 2025/26: Introduction of a new 40% reduction rate, capped at £110,000. However, businesses may lose their current 75% discount. Higher-Value Properties: Subject to increased tax rates. Hospitality and Retail: Reduced rates in 2026/27 to support these sectors. Corporation Tax and Investment Allowances Corporation Tax: Capped at 25%, with “full expensing” preserved. Annual Investment Allowance: Set at £1 million, encouraging business investments. Other Notable Changes VAT on Private School Fees: Introduced from January 1, 2025. Non-Dom Tax Regime: Removal of non-dom status in favor of a residence-based tax scheme. 100% First Year Allowance (FYA): Maintained for capital expenditures. The government hinted at "hard decisions to come" for public service funding, potentially signaling further tax measures in the future.

Budget Summary October 24 We are pleased to update you on today's budget. We will be working to ensure we do all necessary tax planning to minimise the impact for our clients. If you have a concern on how the budget may affect you do give us a call on 0208 468 1087. Income tax Personal tax thresholds will increase in line with inflation from 2028/29 (frozen until then) No change to income tax rates   Dividends No changes to the rates of dividend tax, or the tax free amount, which stands at £500   National insurance Employer’s National Insurance contributions will rise from 13.8% to 15% from April 2025 The threshold at which businesses start paying National Insurance on a worker’s earnings will be lowered from £9,100 to £5,000 from April 2025 The annual employment allowance will increase from £5,000 to £10,500 from April 2025 No change to employee rates of NI   Corporation tax No changes to the rates of corporation tax   Capital Gains tax From today, CGT will increase at the lower rate from 10% to 18% and the higher rate from 20% to 24% The rate of CGT on residential property will stay at 18% and 24% No change to the CGT annual exemption of £3,000   Inheritance tax The threshold will be frozen at £325,000 until 2030 Inherited pensions will be brought into inheritance tax from April 2027   VAT No change to the VAT threshold, which is currently £90,000   Housing Stamp duty land surcharge for second homes will increase by 2% to 5% from 31 October 2024 Freehold holiday let regime to be abolished from April 2025   Other Existing incentives for electric vehicles will continue from 2028 Minimum wage to increase by 6.7% for people aged 21 or older - £12.21 an hour (previously £11.44 an hour) from April 2025 Minimum wage for people aged 18-20 to increase from £8.60 to £10 an hour Apprenticeship pay to increase from £6.40 to £7.55 an hour Business rates discount of 75% for retail and hospitality sectors, due to expire in April 2025, will be replaced by a discount of 40% (to a maximum of £110,000) VAT on private school fees will come into effect from January 2025 Business rates relief on private schools will be removed from April 2025 Single fare bus cap will increase to £3 from £2 – this cap is in place until December 2025 Triple lock on pensions to be kept State pension to increase by the highest of inflation, average earnings or 2.5% Non domicile regime to be abolished Fuel duty will be frozen for 2025, and the 5p cut will be extended for another year Draught alcohol duty cut, and duty on non draught products increase in line with RPI from February 2025  

In case you missed it, on Wednesday, Rachel Reeves as the first female Chancellor of the Exchequer, made her first Autumn Budget speech – the first Labour budget in over 13 years. Several tax measures and policy changes were announced with potential impacts on individuals, businesses and investors.   We have summarised key highlights below, but please click the following link for our detailed newsletter: https://lnkd.in/eZPSd56g   Capital Gains Tax (CGT): Immediate rate increase: Basic rate taxpayers will now pay 18% on gains (up from 10%) on non-residential property, and gains outside the basic rate band are now taxed at 24% (up from 20%). Qualifying business disposals (Business Asset Disposal Relief): CGT rates will rise from 10% to 14% as of 6 April 2025 and to 18% on 6 April 2026.   Stamp Duty Land Tax (SDLT): In England and Northern Ireland increase on additional properties: SDLT rates are immediately 2% higher for individuals purchasing additional residential properties, impacting landlords and property investors.   Income Tax and National Insurance Contributions (NICs): Rates Frozen: Income tax rates and thresholds remain static until 5 April 2026. National Minimum Wage (NMW): Increased rates from April 2025, with those aged 21+ rising to £12.21 per hour, and increases for younger workers as well. Employers’ NICs: From April 2025, employers will pay NICs at 15% (up from 13.8%), and the secondary threshold for contributions will decrease from £9,100 to £5,000. Employers’ Allowance: From April 2025 this will increase to £10,500 (currently £5,000).   Corporation Tax (CT): Rates remain at 25% for the main rate and 19% for small profits, with marginal relief available for companies with profits between these thresholds. First-Year Allowance for Zero-Emission Vehicles: Extended until 31 March 2026.   VAT Changes: VAT on Private School Fees: From January 2025, private school fees will be subject to VAT at 20%. Thresholds: VAT registration and deregistration thresholds will remain at £90,000 and £88,000, respectively, from April 2025.                 Inheritance Tax (IHT): Changes to Agricultural and Business Property Reliefs: From April 2026, only the first £1 million of qualifying property will receive full relief, with values over this threshold eligible for 50% relief. Undrawn Pensions in Estates: From April 2027, undrawn pension funds will be included in estates for IHT purposes.   For a full breakdown, please refer to our attached newsletter. #2024springbudget #springbudget #labourbudget #rachelreeves #idealschools #bookkeeping

𝗕𝘂𝗱𝗴𝗲𝘁 𝟮𝟬𝟮𝟰: 𝗞𝗲𝘆 𝗽𝗼𝗶𝗻𝘁𝘀 𝗮𝘁 𝗮 𝗴𝗹𝗮𝗻𝗰𝗲 Chancellor Rachel Reeves has delivered Labour’s first Budget since 2010, after the party’s return to power in July’s general election. Here is a summary of the main measures. Personal taxes Rates of income tax and National Insurance (NI) paid by employees, and of VAT to remain the same Income tax band thresholds to be unfrozen in 2028, preventing more people being dragged into higher bands as wages rise over time Capital gains tax paid on profits from selling shares to increase from up to 20% to up to 24% - rates on additional property sales to stay same Freeze on inheritance tax thresholds extended beyond 2028 to 2030 Business taxes Firms to pay National Insurance on workers’ earnings above £5,000 from April, down from £9,100 currently, with the rate increasing from 13.8% to 15% Employment allowance - which allows companies to reduce their NI liability - to increase from £5,000 to £10,500 Tax paid by private equity managers on share of profits from successful deals to rise from up to 28% to up to 32% from April Main rate of corporation tax, paid by businesses on taxable profits over £250,000, to stay at 25% until next election Transport £2 cap on single bus fares in England to rise to £3 from January 5p cut to fuel duty on petrol and diesel, due to end in April 2025, kept for another year Commitment to fund tunnelling work to take HS2 high-speed rail line to Euston station in central London Commitment to deliver upgrade to trans-Pennine rail line between York and Manchester, running via Leeds and Huddersfield Air Passenger Duty on flights by private jet to go up by 50% Smoking and alcohol New tax of £2.20 per 10ml of vaping liquid introduced from October 2026 Tax on tobacco to increase by 2% above inflation, and 10% above inflation for hand-rolling tobacco Tax on non-draught alcoholic drinks to increase by the higher RPI measure of inflation, but tax on draught drinks cut by 1.7% Housing Current affordable homes budget, which runs until 2026, boosted by £500m Social housing providers to be allowed to increase rents above inflation under multi-year settlement, external Stamp duty surcharge, paid on second home purchases in England and Northern Ireland, to go up from 3% to 5% Wages, benefits and pensions Legal minimum wage for over-21s to rise from £11.44 to £12.21 per hour from April Rate for 18 to 20-year-olds to go up from £8.60 to £10, as part of a long-term plan to move towards a "single adult rate" Eligibility widened for the allowance paid to full-time carers, by increasing the maximum earnings threshold from £151 to £195 a week UK debt, inflation and economic growth Office for Budget Responsibility predicts the UK economy will grow by 1.1% this year, 2% next year, and 1.8% in 2026 Inflation predicted to average 2.5% this year, 2.6% next year, before falling to 2.3% in 2026

Oil and gas industry will be relieved that the rate of capital allowances and cash benefit of the carbon investment allowance for Energy Profits Levy remained unchanged in the budget yesterday, and will also be thinking about the forthcoming consultation for a replacement regime that better responds to oil and gas price shocks.

A great summary of the key tax announcements in the UK Budget earlier today - do let me know if you would like to discuss any of these further.

A really useful summary of the key measures from Amanda below, with much more on www.ukbudget.com The increase in wage bills through the combination of the increase in National Minimum Wage and employer National Insurance Contributions will be a worry for many local Northern Irish businesses, though the increase in the Employment Allowance mitigate the impact for some locally. The changes in Inheritance Tax will merit scrutiny to further understand the potential impact on our local family businesses and farms - in particular for those estates at the larger end of spectrum. When combined with the changes to Capital Gains Tax rates, there will certainly be things to consider over the coming days and weeks as businesses plan for the longer term. It's helpful to have some broad certainty on the corporate tax side for a period - the laying of a corporate tax roadmap should hopefully provide ongoing confidence for business to invest and whilst there may be a few tweaks to the R&D reliefs for Northern Irish businesses, the commitment to the rates will continue to support our innovative businesses. A busy budget indeed! #Autumnbudget2024 #Deloittefiscalnews

Businesses will need to assess the impact of the higher costs of employment but will welcome the commitment to a capped corporate tax rate and reliefs for capital expenditure, R&D and intangible assets and the certainty this brings for the duration of Parliament

Autumn Budget 2024 - this one was pretty packed! With effect from 6 April 2025, the capital gains tax rate for carried interest will increase to 32% (a 4% increase, from 28%, for additional rate taxpayers). Other than the rate change, the existing capital gains regime will apply until 5 April 2026, after which new wider reforms to the tax treatment of carried interest will come into effect. Under the proposed carried interest reforms, carried interest will be treated as deemed trading income. For those in the asset management industry who feared blanket income tax treatment, the news will be welcome.