08/09/2024
Autumn Budget watch 🧐
The UK Autumn Budget 2024, scheduled for 30th October 2024, is expected to address a variety of financial challenges.
Key themes and potential changes include:
💰Capital Gains Tax (CGT) - There's speculation that CGT rates might be aligned with income tax, which could see basic-rate taxpayers facing a 20% CGT rate (up from 10%), and higher-rate taxpayers paying 40% or more.
💰Inheritance Tax (IHT) - Although no changes to the rates are expected, frozen thresholds mean more estates could be subject to IHT due to rising asset values. There may also be reviews of exemptions for pensions, business relief, and agricultural land.
💰VAT - Private education services will be subject to VAT at the standard 20% from January 2025, and charitable rate relief for private schools is expected to be removed.
💰Pensions - A possible shift toward a flat-rate tax relief system, potentially set around 30%, would reduce advantages for higher earners. However, the 25% tax-free lump sum is expected to remain.
Stay tuned to find out more as we follow the Autumn Budget news throughout the next couple of months.
Sources:
thisismoney.com
Evening Standard
