Labour raise taxes by £40bn, the biggest single increase in a generation. Who does this impact?
With the biggest single increase in taxes in a generation, we outline below the key changes.
Employment Allowance Increase - £5,000 - £10,500
With the doom and gloom around Tax Rate increases, this is a welcome relief for Small Businesses.
Employer NIC threshold - reduced from £9,100 - £5,000
Businesses will start paying Employer NIC on Employee Income in excess of £5,000.
Capital Gains Tax (CGT) Increase - from 10% to 18% Basic Rate and 20% to 24% Higher Rate - immediate affect
There has been an increase in CGT Rates for Sale of Assets (Shares, Securities, etc). The Residential Property amounts have remained the same.
Stamp Duty Surcharge - Change - 3% - 5%
The Stamp Duty Surchage for additional properties will increase from 3% to 5%. Immediate effect.
National Insurance - Employer - Change - 13.8% - 15%
One of the standout changes was the increase in Employer National Insurance from 13.8% to 15%.
This will effect businesses with a large labour force here in the UK.
Business Asset Disposal Relief (BADR) - Change - 10% - 14% in 2025 further to 18% in 2026
Effective from April 2025 and April 2026. This change will increase the CGT payable by Entrepreneurs, giving an incentive to sell BADR qualifying Assets by 5 April 2025. Lifetime Allowance remains at £1 million.
Non-Dom Tax Regime Abolition
Non Domiciled status has attracted relief in previous years. New rules will be in place for individuals that are Non UK Nationals.
HMRC Interest for Late Payment
HMRC's late payment interest rate rises by 1.5% from April 2025 to 4%.
NMW - Increase from £11.44 to £12.21 per hour
There is an increase in NMW from £11.44 to £12.21.
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