The 2024 Autumn Budget introduced key tax changes affecting individuals and businesses alike. From updates to income tax bands and capital gains rates to shifts in National Insurance contributions, this budget aims to balance growth with cost-of-living support.
Key tax changes for 2025/26:
- Most main tax allowances and reliefs remain at their previous 2024/25 levels, with no major increases for the new tax year.
- Employers’ NICs rate will increase from 13.8% to 15% starting April 2025. Additionally, the threshold at which employers begin paying NICs will decrease from £9,100 to £5,000.
- The main rates of CGT have risen from 10% and 20% to 18% and 24%.
- Business Asset Disposal Relief (BADR) and Investors’ Relief: The tax rate on qualifying gains will increase to 14% from 6 April 2025 and to 18% from 6 April 2026.
- The IHT nil-rate band (£325,000) and residence nil-rate band (£175,000) will remain frozen until April 2030, extending the previous freeze by two years.
- The surcharge for Second Homes and Buy-to-Let Properties properties has increased by 2%, raising it from 3% to 5%.
- Electric Vehicles will now be subject to VED, paying the lowest band rate of £10 annually.
Download our Tax Tables 2025/26 here
Download our Budget Summary 2024 here
If you have any questions about how the new tax rates will affect you, as well as measures from the Autumn Budget, please get in touch with your local office or email us on info@smh.group.
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