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As we come to the end of the current tax year, we look at some of the tax changes coming into effect from April and we further explore those announced by the Chancellor in the Autumn Budget.
The articles in this issue are:
- Plan ahead for further capital gains tax changes Changes announced for business asset disposal relief (BADR) and investors’ relief in the Autumn Budget will not be enacted until the new financial year, meaning some planning is possible for business owners and investors.
- Basis period reform: changing your accounting date Self-employed individuals and partnerships who do not draw up accounts to either 31 March or 5 April will experience ongoing additional administrative burdens following the new tax year basis introduced in April 2024.
- Inheritance tax strategy shifts The Autumn Budget changed the tax status of unused pension death benefits. Most unused pension funds are now set to be included in estates for IHT purposes, leading to an effective tax rate of up to 67% for some.
- Small business upside to employment allowance Changes to costs for businesses, in particular increases to national insurance contributions (NICs) for employers and the increase in the employment allowance.
- Furnished holiday lettings (FHL) guidance the FHL tax regime is to be abolished from April 25. HMRC has published recent guidance on how this will work, although there is still some uncertainty.
We hope you enjoy reading the newsletter. Please get in touch if you need help or advice on any of the topics covered.