applicable to those disposing of property remained unchanged with the higher rate of 24% now the same as the general CGT higher rate. It is worth noting that the following temporary SDLT rates are set to expire at the end of March 2025. The 0% SDLT threshold applying on the purchase of residential property will drop from £250,000 to £125,000. The nil-rate threshold for first time buyers’ (FTB) relief will drop from £425,000 to £300,000 and the maximum house price on which FTB relief can be claimed will drop from £625,000 to £500,000. Landlords always seem to bear the brunt of tax rises and this budget was no different.
Asset Disposal Relief will see a more gradual rise in CGT rates from the current 10% to 14% in April 2025 and 18% in April 2026 on lifetime gains up to £1m. Whilst Inheritance Tax thresholds have been frozen until 2030, the bad news is that from 2027 unspent pension pots, previously treat - ed as outside of the deceased Estate for IHT purposes will now fall within the charge to IHT after which beneficiaries will be charged tax at their marginal rates when they with- draw funds. Pensions have been an impor- tant tool in IHT planning and this change will require a change in strategy for many.
Conclusion
Whilst the budget promised investment and growth, business owners are bearing the bulk of the tax rises and this may result in a stagnation of a sector which is key to the generation of wealth and opportunity in the country.
Impact on Private Clients
raffingers.co.uk
Reeves was keen to emphasise that she was keeping to the manifesto pledge not to raise income tax, National Insurance (NI) paid by employees, and VAT, and in a surprising move, she announced that from 2028 the Income Tax threshold would once again rise in line with inflation. However, as predicted, rates of Capital Gains Tax increased with higher rate taxpayers now charged 24% on gains. Carried interest CGT will increase to 32% from April 2025 and from April 2026 will be largely be taxed within the Income Tax and National Insurance regimes. Business owners who qualify for Business
Connect with Yedidya
yedidya.zaiden@raffingers.co.uk
HAROLDBENJAMIN.COM
19
Made with FlippingBook. PDF to flipbook with ease