30/10/2024
๐ท The UK Budget is out, and we're here to break down what it means for you...
๐ฐ Stamp Duty (SDLT) Increases
From tomorrow, 31st October, SDLT will rise for additional properties from 3% to 5%. Any contracts exchanged before 31st October won't be impacted, regardless of completion date.
This will directly impact anyone purchasing a second home, buy-to-let properties, or any companies purchasing residential properties.
Also note, the 0% stamp duty threshold for first time buyers, is set to fall to ยฃ300,000 from ยฃ425,000, in April 2025.
๐ฐ Inheritance Tax
Inheritance tax (IHT), which is currently 40%, is usually paid on the value of a deceased person's assets above a threshold of ยฃ325,000.
At present, any money saved in a pension does not count towards this but, from April 2027, inherited pensions will be included.
This is likely to bring more estates into the inheritance tax net.
Until now, various exemptions have allowed certain types of property, such as farms and family business assets, to be disregarded in terms of inheritance. However, from April 2026, the rules will ensure some tax will be paid on assets of more than ยฃ1m.
๐ฐ Wage and National Living Wage Increases
From April 2025, the National Living wage for employees aged 21 and over, will rise from ยฃ11.44 an hour, to ยฃ12.21. If you are aged 18, 19 or 20, the National Minimum Wage will go up from ยฃ8.60 an hour, to ยฃ10.
๐ฐ Capital Gains Tax Increases
Capital gains tax (CGT) is charged on the profit made from the sale of assets that have increased in value, such as second homes or investments.
The chancellor has announced the rate at which CGT is charged will go up, from 10% to 18% for basic rate taxpayers, and 20% to 24% for those who pay at the higher rate. This will match the existing rates for property which will stay the same.
๐ฐ Employer NI Contributions Increase
On top of the extra cost of paying staff on the minimum wage, many employers will have to make a bigger contribution to National Insurance (NI) covering more of the people they employ.
NI paid by employees will not change.
If you're concerned as to how the budget may affect you, get in contact!
๐: 07713182955
๐ง: [email protected]
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE