Summary of key announcements from UK Budgets

Autumn Budget 2025

The Chancellor outlined a series of tax and National Insurance reforms, including new, higher tax rates for property and savings income from April 2027 and increased dividend tax rates from April 2026. Pension salary sacrifice arrangements will be restricted from April 2029, capping the NI-free sacrifice at £2,000 without affecting tax relief. From April 2026, individuals working abroad will lose access to voluntary Class 2 NI contributions and will instead need to make more costly Class 3 contributions if they meet the required 10-year UK residence or contribution history. Additionally, from April 2027, employers will be mandated to payroll all benefits in kind, removing the option to report them via Forms P11D. Read On

Autumn Budget 2024

The Chancellor set out several upcoming tax changes, including a rise in employers’ National Insurance to 15% from April 2025, alongside a reduction in the secondary threshold to £5,000 and a significant increase in the employment allowance to £10,500 with eligibility widened to all employers. The government will consult on extending transfer pricing rules to medium-sized businesses by narrowing the SME exemption. Capital Gains Tax rates will rise from 30 October 2024, with the lower rate increasing from 10% to 18% and the higher rate from 20% to 24%. Major reforms to the non-dom regime will apply from April 2025, bringing anyone UK-resident for more than four years into tax on worldwide income and gains, while newcomers can elect for a four-year exemption and limited Overseas Workday Relief. Inheritance Tax will apply to all individuals once they have been UK-resident for 10 years, and from April 2027 unused pension pots will become subject to IHT on death. Additionally, from 31 October 2024, the SDLT surcharge on second homes and buy-to-let properties will rise from 3% to 5%.  Read On

Spring Budget 2024

The Chancellor announced a wide range of tax and spending measures, including further cuts to National Insurance for employees and the self-employed from April 2024, and significant reforms to the High Income Child Benefit Charge, raising the threshold from £50,000 to £60,000 and slowing the withdrawal rate so that benefits are not fully removed until income reaches £80,000. The long-standing non-dom tax regime will be abolished and replaced in April 2025 with a residence-based system taxing foreign income after four years of UK residence. Other changes include reducing the higher Capital Gains Tax rate on residential property to 24%, abolishing Multiple Dwellings Relief from June 2024, and removing the furnished holiday lettings tax advantage from April 2025. Fuel duty and alcohol duty will be frozen for another year, while new vaping duties and higher tobacco duties will begin in 2026. Air passenger duty for premium and business travellers will rise above inflation from 2025/26, and the VAT registration threshold will increase to £90,000 in April 2024.  Read On

Spring Budget 2023

The Spring Budget 2023 had limited impact on individuals from a tax perspective.  However, the main impact of note was in relation to pensions and in particular 2 key changes:-

- From 6 April 2023, individuals can receive tax relief on pension contributions of up to £60,000 an increase of £20,000 compared to prior years;  However, please note these amounts are tapered depending on your level of income subject to a minimum available allowance of £4,000 a year.

- The lifetime pension allowance (LTA) currently set at £1.073m is the maximum amount you can draw from your pension without paying extra tax.  From 6 April 2023 the LTA charge will be removed with the allowance being abolished from 6 April 2024.  Read On

Autumn Budget 2021

Chancellor Rishi Sunak delivered his Budget 2021 speech to the House of Commons on 27th October– a fiscal approach designed to prepare the UK for an “age of optimism” in the post-Covid-19 economy. Nevertheless, Mr. Sunak sounded a note of caution that this Budget did not draw a line under Covid-19, acknowledging issues regarding increasing inflation and cost of living. Read On

he Budget comes at a time when concerns are rising about the public health and economic impacts of the coronavirus. The OBR’s forecast figures don’t reflect the latest developments with the virus.

This is the first budget since the UK formally left the EU. The UK is currently in a transition period during which nearly all EU rules will continue to apply. The transition period is set to end after 31 December 2020. A future relationship is being negotiated by the UK and EU for the post-transition period Read On