People tax planning in Cheshire and across the UK will likely have studied the Autumn Budget this week with interest.
While there were no changes to income tax or VAT, the Chancellor of the Exchequer, Rachel Reeves, did announce a number of other tax changes, capital spending plans and public investment commitments, particularly in health, education, housing and green tech.
Behind the headlines, the measures also included a freeze on existing inheritance tax thresholds until 2030, as well as reforms to agricultural and business property reliefs.
The inheritance tax nil rate band remains at £325,000, and the residence allowance of £175,000 for properties bequeathed to direct descendants are retained, meaning married couples can still pass down any amount up to £1 million inheritance tax-free.
Pensions will now be included in the assets that count towards 40% inheritance tax from April 2027, but there is no change to the existing regime of 25% tax-free pension lump sum withdrawals.
Meanwhile, capital gains tax for the majority of assets will increase from 10% to 18% at the lower rate and from 20% to 24% for higher earners. This increase in capital gains tax will bring the rate for most assets in line with the rate that is payable on property.
Landlords and second home owners will also be hit with a rise in the stamp duty they pay when purchasing property, with the existing 3% surcharge rising to 5%.
For further information on how the Budget could affect you, contact our financial planning specialists at Hartey Wealth Management today to set up an appointment.
