Following the recent budget announcement in the UK, there have been significant changes to the tax policy that are important to understand. National Insurance Contributions, Capital Gains Taxes, and Inheritance Tax (IHT) have all been affected, with specific implications for family farms.
We will be covering all this detail in our Budget Breakfast meeting on 5th November 2024.
What are the Changes to National Insurance Contributions?
One of the key changes is the increase in National Insurance Contributions. Employer NICs have gone up by 1.2% to 15%, impacting both employees and employers. This change is aimed at funding social welfare programs and addressing budget deficits. We think you should be paying attention to all the other changes to employment rules and minimum wages and assessing these costs in the round and what it means for those wishing to train apprentices, grow rapidly or expand into new physical premises.
How have Capital Gains Taxes been Affected?
Capital Gains Taxes have also seen an increase, with rates now at 18% for basic rate taxpayers, 24% for higher rate payers and 32% for carried interest. This change will impact individuals who sell assets such as property or investments for a profit. It is important for taxpayers to be aware of these new rates to accurately calculate their tax liabilities.
What are the Big Changes to Inheritance Tax (IHT) for Family Farms?
Family farms have been particularly affected by the changes to Inheritance Tax. The government has introduced new rules that could result in higher tax bills for families passing down agricultural property with inheritance tax relief for farms being limited to £1m. It is crucial for farm owners to seek professional advice to navigate these changes effectively, and we would like farmers across the UK come and meet with us this Tuesday at our budget breakfast.
What are the Additional Concerns in the Details?
While the headline changes to National Insurance Contributions, Capital Gains Taxes, and IHT are significant, there are additional concerns in the details of the new tax policy. Taxpayers should pay close attention to the fine print to ensure compliance and avoid any penalties or surprises.
Overall, staying informed about the recent changes to tax policy in the UK is essential for individuals and businesses alike. By understanding the implications of these changes, taxpayers can make informed decisions and plan their finances accordingly. Consulting with a tax professional or financial advisor can provide further clarity on how these changes may impact specific situations.