Last Month’s Autumn Budget – Where Can I Go With All My Questions?

John Benson, Partner and Head of The Private Client Department reflects on some areas he’s been asked to advise on since last month’s budget announcement. These have included key clarifications on changes to tax policies.

Inheritance Tax

There was lots of speculation about inheritance tax reforms within the Budget.  The freezing of the threshold has been extended to 2030.  In addition, pension pots are to be included in the value of the taxable estate from April 2027.  It is unclear at this stage exactly how that will be implemented but it will be sensible for clients to review their arrangements, particularly where clients have relied on this exemption for inheritance tax planning.  Business Property Relief and Agricultural Property Relief are being reduced to 50% for assets over £1,000,000 from April 2026.  For those individuals effected, there will be a substantial impact and again, planning will be needed once the full details are available.

Stamp Duty Land Tax

The Stamp Duty surcharge on second homes and investment properties has increased from 3% to 5% with effect from the Budget.

Non-domiciled Status

The non-dom tax regime will be abolished with effect from April 2025.  There are proposals to introduce a residence-based scheme in its place.

VAT on Private School Fees

The Government has confirmed its election promise to add VAT to independent school fees with effect from January 2025 and to remove Business Rate Relief for private schools with effect from April 2025.

Capital Gains Tax

There is an immediate increase in rates with the lower rate increasing from 10% to 18% and the highest rate to 24%.  The different rates for residential property remain unchanged as does the annual allowance of £3,000 for individuals.

Get in touch

To understand how these updates may impact your specific plans or goals, it’s essential to get tailored guidance. John and his Team encourages anyone with further questions to reach out for more details.

Please note the above is for information purposes only and is intended to be a short summary. It should not be treated as a comprehensive guide and should not be acted on without qualified legal advice.