Money Matters - May 2024 Accounting Newsletter

In this edition our feature article looks at changes within property taxation

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With Spring comes the start of a new tax year and for 2024/25 there are several key tax changes likely to affect you over the course of the year. These include national insurance cuts, the reduction of the dividend and capital gains tax allowances and for businesses, a rise in the VAT threshold.

Our feature article is about the changes within property taxation, including a reduction in the higher rate of capital gains tax for individuals on residential properties, the abolition of multiple dwellings relief and the abolition of the tax reliefs available for furnished holiday lettings.

The articles in this issue are:

  • Property taxation changes Although the higher rate of capital gains tax (CGT) on residential property disposals has been reduced by 4% to 24% from 6 April 2024, the March Budget was otherwise unhelpful for landlords. The abolition of the tax reliefs available for furnished holiday lettings from April 2025 will particularly hurt higher and additional taxpaying owners with big mortgages.
  • New tax year planning Much tax planning is rightly focused on the end of the tax year with a view to making the most of all available tax reliefs and allowances, but it is also important to be aware of key changes at the start of a new tax year.
  • Self-employed and pensions According to a recent survey, three quarters of self-employed people are not currently contributing to a pension and half have never even started a pension scheme.
  • Navigating minimum wage rises National minimum wage rates increased on 1 April 2024 and some employers could get caught out.
  • Two for one replacement for pensions lifetime allowance The pensions lifetime allowance (LTA) has been abolished, meaning there is no longer any restriction on how much you can hold in a tax-favoured pension scheme without triggering an extra tax charge. Instead, two new allowances will limit tax-free cash benefits on retirement and on death.

We hope you enjoy reading the newsletter. Please get in touch if you need help or advice on any of the topics covered.

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