Upcoming Budget

In August it was announced by Rachel Reeves, the new Chancellor, that there would be a Budget on 30 October 2024. Given the widespread reporting of the apparent £22 billion hole in public finances, it can be expected that the Budget will include measures to increase taxes and reduce public spending.

Some tax measures have already been announced, namely:

• VAT is to be charged at a rate of 20% on private school fees from 1 January 2025.

• The Furnished Holiday Let tax regime is to be abolished from April 2025.

• The non-domicile tax regime is to be abolished from April 2025, although recent reports suggest that this is being reconsidered.

• A renewed effort to close the ‘tax gap’ through the recruitment of an additional 5,000 HMRC staff.

Changes were also announced to those eligible to receive winter fuel payments for 2024/2025. Previously these were paid to all pensioners of a certain age. However, the eligibility rules have been tightened and payments will only be made to those who receive pension credits, or another means tested benefit.

Speculation is bound to increase as to the additional tax measures that may be included in the Budget in the weeks ahead. Can we expect there to be changes to inheritance tax, capital gains tax, trust taxation or pension taxation?

We will need to wait until 30 October to find out, but if there are areas of concern, or if you have questions about how the Budget will impact you, please do get in touch below: