On 30 October 2024 the Chancellor Rachel Reeves made her first Budget speech, saying she was proud to be the first woman Chancellor. Many of the details are found in the detailed proposals published at the end of her speech. These are the highlights as they affect our clients:-
Employers NIC
The main revenue raising measure was to increase the rate 15% and decrease the lower threshold to £5,000 at which salary becomes chargeable to NIC.
Offset by increase in the Employers Allowance.
Capital Gains Tax
Not quite the bad news that many feared of CGT at IT rates
Increase in main rate to 24% from 20% with immediate effect.
Business Property Disposal Relief remains at 10% for £1m until 5 April 2025 when it will increase to 14%.
Domicile
The Chancellor announced that domicile would be removed from the UK tax legislation and be replaced by a residence based system for Income Tax and Inheritance Tax.
Inheritance Tax
The nil rate band will remain unchanged but full relief for Business Property Relief and Agricultural Property Relief will be limited from 6 April 2026 to £1m with relief on property above that level limited to 50%.
