Following weeks of speculation Rachel Reeves delivered the budget on the 30th October, this was not only her first budget but also the first budget to ever be delivered by a female. It was also the first budget for Labour in nearly 15 years and one of the longest budget speeches, which lasted 76 minutes and included £40bn worth of tax hikes1.
These included:
• Immediate Raises in rates of Capital Gains Tax
• Raise in Employers National Insurance contributions
• Raises in the Stamp duty surcharge on second homes
• Carers allowance increase
• VAT on School fees
• Inherited Pensions subject to Inheritance tax.
These are just a few of the changes but how does this all affect you? There are a range of calculators available online which you can access to see how the budget changes will impact your finances. We are finding that we are being asked to review many of our clients’ financial plans due to this budget.
Over the years I have seen many individuals worrying about financial matters unnecessarily. For example, currently fewer than one in 20 estates, that’s just over 4%, pay inheritance tax. This means that tax is paid on about 27,800 estates a year. However, many more people than this believe they could be liable. A YouGov poll for The Times newspaper in July 2023 suggested a third of the UK population thought inheritance tax would need to be paid on their assets when they died2. The number paying inheritance tax should increase by the budget changes, but as I have said previously, I feel it is important to treat your income like a business and see how all the changes affect you.
We offer a free without obligation consultation so if you want advice on the budget changes why not pick up the phone today.
*1 This is Money, 1st November 2024
*2 BBC, 30th October 2024
The content included on this page is based on our understanding of the UK tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances.