Today’s Spring Statement was somewhat of a non-event for tax.
This may represent a disappointment for those taxpayers and professional advisers, who were hoping for a relaxation of national insurance increases and/or inheritance tax changes. However, with £40 billion in additional tax revenue on the line – and Government finances increasingly strained – further change seems increasingly unlikely.
Taxpayers are therefore recommended to maintain an awareness of the changes announced in the Budget late last year – and covered in our previous Budget Summary found HERE – including:
- Employer’s National Insurance: an increase in rates – from 13.8% to 15% – and the slashing of the threshold from £9,100 to £5,000
- Inheritance Tax: Business / Agricultural Property Relief is to be halved to 50% (i.e. 20% IHT) on qualifying assets exceeding £1m and AIM shares. IHT will also soon apply to undrawn pensions and
- Capital Gains Tax: rates were increased to 18% / 24%, and Business Asset Disposal Relief rates increased from 10% to 14% from 6 April 2025 onward, and again to 18% the following tax year.
Further tax measures announced by the Chancellor were focused on increasing Government revenues through further investment in HMRC, in a bid to help close the Tax Gap.
Download our summary by clicking below to find out more about the relevant changes.
