On 30 October 2024, Chancellor Rachel Reeves presented her first Budget to Parliament. This was a Budget intended to restore stability to our economy and to begin a decade of national renewal. Investment will be funded by revised debt rules to facilitate additional borrowing and a hefty £40 billion of tax rises.
Headlines included:
Immediate increases to capital gains tax rates with further uplifts in relation to some business disposals from both April 2025 and April 2026.- Immediate increases to Stamp Duty Land Tax, including for those buying residential property when they already own at least one dwelling.
- Confirmation that 20% VAT will apply to private school fees for the school term beginning in January 2025.
- Increased costs for many employers from April 2025 through both increases to the national minimum wage and significant reforms to employers’ national insurance contributions.
- Another change in approach for businesses utilising double-cab pick up vehicles, coming into effect in April 2025.
- Plans to restrict inheritance tax agricultural and business property reliefs from April 2026.
- Plans to include an individual’s undrawn pension fund in their inheritance tax estate from April 2027.
