Budget 2025 – an unprecedented Budget
The run up to the Budget was unprecedented in many ways – so many briefings (and counter briefings), a lot of kite-flying, u-turns on policies which had not themselves been formally announced and then the release of the Office for Budget Responsibility’s report before the Chancellor even stood up to start her speech. We always […]
Budget 2025 – target set on property, savings and dividend income
The income tax rate applicable to dividend income, property income and savings income will be increased to try and align the tax burden with earned income (being income derived from employment and self-employment). Essentially, this is because earned income is subject to national insurance contributions, whereas dividend income, property income and savings income is not. […]
Budget 2025 – pension relief is sacrificed
Salary sacrifice arrangements have been about for many years and, although they have been tightened up, the ability to sacrifice salary in exchange for your employer making a pension contribution on your behalf has previously been preserved. So, what’s the benefit – well, pension contributions benefit from income tax relief, but not national insurance contributions. […]
Budget 2025 – the ‘mansion tax’ is here!
A new tax will apply to residential property in England which is worth more than £2 million (based on the valuation in 2026) with effect from April 2028. The delay in the introduction will allow for a consultation to be held (including consideration as to how this will apply to properties held by companies, trusts, […]
Budget 2025 – employee ownership trusts… only half as good as they used to be
Introduced back in 2014, the concept of selling your business to an EOT allowed, in simple terms at least, for the proceeds of the sale to be free from capital gains tax. Obviously, there were a raft of conditions which needed to be met to fall within these provisions and these were tightened up slightly […]
Budget 2025 – incorporations brought under the microscope
Where an individual, partners or trustees transfer a business into a company in exchange for the company issuing them with shares, then (subject to a number of conditions being met) the inherent gain on the disposal of the business can be rolled into the shares issued by the company – effectively, the gain is deferred […]
Budget 2025 – business tax round up
In addition to the changes to pension salary sacrifice and incorporation relief there were a number of the measures announced which will impact upon businesses: Capital allowances A new 40% first year allowance for expenditure incurred on or after 1 January 2026 will be available to cover expenditure where the annual investment allowance or full expensing […]
Budget 2025 – not much new for inheritance tax
While we are still in shock from the changes announced at the Budget last year, it was not surprising that there was not much to report on the inheritance tax front. Although there were some changes around excluded property trusts (to help lighten the blow of the changes to domicile rules), the key announcement was […]