The budget will affect businesses and individuals in many ways. Following briefs and analysis from various sources, it is clear that the after-effects will be far and wide and that seeking early, pre-emptive advice will be crucial. With a large portion of our business being in the financing of property – some immediate points that our clients must be aware of are:
Stamp Duty Land Tax – INCREASE to higher rates on additional dwellings.
For those who choose to invest in residential property too, the higher rates for additional dwellings surcharge on Stamp Duty Land Tax (SDLT) has since increased by 2%, resulting in an increase in the rate from 3% to 5%.
Business Assets Disposal Relief (BADR).
BADR will increase to 14% for disposals made in the 2025/26 tax year and 18% for disposals made on or after 6 April 2026.
Capital Gains Tax (CGT).
As of the 30th of October, Capital Gains Tax (CGT) rose, for lower rate tax payers from 10% to 18% and, for higher rate tax payers, from 20% to 24%, bringing the rates in line with residential property which did remain unchanged.
Now this is just to mention a few! – There were many changes announced, from major shakeups to some IHT allowances, benefit-in-kind rates for some business vehicles, an increase to national minimum wage or changes in employers’ national insurance contributions.
The commercial and fiscal world has felt a wrath of changes – if you want to know how you and your business may be affected, seeking advice is crucial. Whilst we do not provide specific tax advice, we do work with exceptional local accountants and taxation experts – reach out if you would benefit from an introduction.