With the date of the new government's first Autumn Budget set for Wednesday 30 October 2024, there is intense talk around what tax rises might be unveiled by Rachel Reeves, the new Labour chancellor.
Peter Ball, tax partner at Cheltenham-based tax, audit and accountancy firm, Bishop Fleming, said: 'Whilst the chancellor has promised not to raise income tax, National Insurance or VAT, it appears likely that there will be changes to capital gains tax, inheritance tax, stamp duty, fuel duty, pension tax relief and maybe council tax and business rates, too.'
So what does this mean for people and business owners in Gloucestershire?
Peter continued: 'It is possible that tax relief given on pension contributions could be cut, and there has even been speculation that the current 25 percent tax free lump sum that can be taken from a pension pot could be reduced over time.'
'It also seems likely that capital gains tax rates could increase from their current 20 per cent (24 per cent for residential property) to 40 per cent or even 45 percent.'
While we know that for those who are not UK domiciled, the special tax rules affecting them change from Sunday 6 April 2025, Peter states that 'the planned transitional rule regarding a 50 per cent reduction on tax due on foreign income and gains in year one will not now be introduced.'
For holiday home owners, it was previously announced that furnished holiday let rules were to be scrapped from the new financial year, making it essentially 'less attractive to rent out a property', and this looks set to stay.
And of course it has been confirmed that VAT on independent school fees will start from Wednesday 1 January 2025 — this includes fees for 2025 paid in advance from the end of July 2024 onwards, too.
While Peter can't predict exact figures at this stage, he does advise having a conversation with a tax professional in anticipation of how you or your family, or business may be affected by the upcoming budget.
Bishop Fleming is also hosting a post-Autumn Budget seminar at Cheltenham Racecourse on Thursday 31 October 2024, from 8am to 10am. Its team of experts will discuss and explain the budget measures in detail, with those attending able to ask questions and discuss how the new tax measures might affect their own personal or business's tax position.
Book a place via Bishop Fleming's website, or to speak to a tax expert, call (0333) 3219000 or email pball@bishopfleming.co.uk.
