Autumn Budget: How Potential Changes Could Impact You
Author – Ben Powell, Ballards LLP
The Autumn Budget, scheduled for October 30, 2024, is expected to introduce significant changes. Key points include:
- Income and Taxes: Labour has committed to keeping income tax, National Insurance, VAT, and corporation tax stable.
- Pensions: Higher earners might face reduced pension tax relief and a lower tax-free lump sum.
- Property and Investments: Capital Gains Tax may increase or align with income tax rates, affecting property sales and investment gains.
- Inheritance: Potential changes to Inheritance Tax exemptions for agricultural land and businesses could impact estate planning.
- Education Costs: Private school fees will be subject to VAT from January 2025, raising costs.
- Council Tax and Business Rates: Increases may be on the horizon.
For specific groups:
- Non-domiciled Individuals: Taxation changes from April 2025 will affect international workers and investors.
- Business Owners: Changes to Business Asset Disposal Relief could impact those selling businesses.
- Private Equity Investors: Higher tax rates may apply to earnings.
- Holiday Let Owners: New rules will affect those renting out holiday properties.
These proposed changes aim to address financial challenges but will only be fully understood after the Budget is announced. Consulting a financial advisor is recommended to gauge personal impacts.
