Over the last few months there has been much speculation about the contents of the Autumn Budget.

Following our same-day reactionary article by Terry Burgum, we now pleased to provide further detail on some of the key policy and tax changes announced that may affect individuals.

Inheritance Tax

• The current inheritance tax thresholds are due to be frozen until April 2028, and the government is extending these threshold freezes for a further two years to April 2030.
• These thresholds per individual are currently:
  • Nil rate band at £325,000
  • Residence nil-rate band at £175,000
  • Residence nil-rate-band taper, starting at £2milion

Inherited pensions

• From 6 April 2027, when a pension scheme member dies with unused funds or without having accessed all of their pension entitlements, those unused funds and death benefits will be treated as being part of that person’s estate and may be liable to Inheritance Tax.
• A small number of specified pension benefits will remain outside scope for Inheritance Tax.

Capital Gains Tax

• The lower rate of Capital Gains Tax (that applies to assets other than residential property and carried interest), will increase from its current level of 10% to 18%, and the higher rate from 20% to 24% for disposals made on or after 30^th October 2024.
• The main rate of Capital Gains Tax that applies to Trustees and personal representatives will increase from 20% to 24% for disposals made on or after 30 October 2024.
• The rate of Capital Gains Tax that applies to Business Asset Disposal Relief and Investors’ Relief is increasing to 14% for disposals made on or after 6 April 2025 and from 14% to 18% for disposals made on or after 6 April 2026.
• The rates on residential property will remain at 18% and 24%

ISAs

• The government will not be moving forward with the British ISA, but otherwise, the structure and annual subscription limits of £20,000 for ISAs, £4,000 for Lifetime ISAs and £9,000 for Junior ISAs remain the same until 5^th April 2030.

Click here to download your full Autumn Budget 2024 Summary

Should you have any questions or wish to discuss your own particular circumstances please do not hesitate to contact us.

 

Contact us on 0330 320 9280, email: info@cravenstreeetwealth.com or complete our online enquiry form to discuss how you may be affected by changes announced in the 2024 Autumn Budget.

The content of this article is for information only and does not constitute formal financial advice. This material is for general information only and does not constitute investment, tax, legal or other forms of advice.

You should not rely on this information to make, or refrain from making any decisions. Always obtain independent, professional advice for your own particular situation.

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