After weeks of fevered speculation the Chancellor has delivered the government’s Autumn Budget for 2024.
The points to note are these:
Changes to CGT Rates;
Starting 30 October 2024, CGT rates have increased:
- General Assets: Basic rate rises from 10% to 18%, higher rate from 20% to 24%
- Trustees/Personal Representatives: Rate increases from 20% to 24%
- Residential Property: Rates remain the same at 18% and 24%
Business Asset Disposal Relief (BADR) and Investors’ Relief
- Starting 6 April 2025, rates for BADR and investors’ relief increase from 10% to 14%, with a further rise to 18% in April 2026.
- Special provisions apply for contracts between 30 October 2024 and 5 April 2026.
Investors’ Relief – Lifetime Limit Reduction
- The CGT lifetime limit for investors’ relief is reduced from £10 million to £1 million for disposals on or after 30 October 2024.
Carried Interest Taxation Reform
- A new tax regime for carried interest begins on 6 April 2026, treating it as trade profits subject to income tax and Class 4 National Insurance. Interim rates increase from 18% and 28% to 32% starting 6 April 2025.
Private school taxation confirmed;
- As announced in July 2024, the government will make all education and boarding services provided by private schools subject to the standard rate of VAT. There are also anti-forestalling measures intended to capture pre-payments of fees on or after 29 July 2024 but before 30 October 2024. The legislation will apply in respect of education services provided after 1 January 2025.
Other measures;
- There have also been significant changes to the inheritance tax treatment of unused pension funds and death benefits payable from a pension into a person’s estate; and also in relation to the tax treatment of agricultural land for IHT purposes.
