The Big Budget Tax Changes

2024/25

by Carl Bayley & Nick Braun

Some major tax changes were announced in the March 2024 Budget. These affect almost everyone including:

• Company owners
• Self-employed business owners
• Property investors and landlords
• Parents receiving child benefit
• Non-domiciled individuals (‘non doms’)

There have also been other important tax changes in recent times.

This brand new guide explains them all in plain English with lots of easy to follow examples.

And, as always with Taxcafe guides, the focus is on tax planning – how to make the most of all the changes and save tax.

What Information is Contained in the Guide?

Salary versus Dividends 2024/25
How much salary income should company owners pay themselves this year? The recent national insurance cuts, plus other recent tax changes, have made salaries relatively more attractive. In this chapter we explain when a salary of £12,570 is still most tax efficient and when a higher or lower salary will produce greater savings.

Using a Company to Save Tax
Am I better off using a company to run my business? The latest national insurance cuts and other tax changes have altered things considerably. We answer this question with some useful tables showing the exact tax savings/tax cost at different profit levels and under different scenarios.

Reducing the Child Benefit Charge
Starting with the current 2024/25 tax year child benefit is now only taken away when your income is between £60,000 and £80,000 (previously £50,000 and £60,000). We show how those on higher incomes can now do some constructive tax planning to protect this valuable tax-free gift from the Government.

Capital Gains Tax (CGT)
There have been some key changes to CGT, including reductions in the annual exemption and the CGT rate on residential property, and important changes affecting separated couples. All in all, it’s a real mixed bag of good and bad news, so it’s vital to keep on top of what all the changes mean.

Stamp Duty Land Tax
In this chapter we look at some important changes to stamp duty land tax, particularly the planned abolition of multiple dwellings relief on 1st June 2024. This has crucial implications for:

• Anyone buying multiple properties
• Anyone buying a house with a separate annex or granny flat
• Anyone looking to transfer properties into a company
• Many of those transferring properties to other individuals

Furnished Holiday Lettings
One of the most fundamental changes to the UK tax system announced in recent months: the abolition of the furnished holiday letting regime. It’s important to take action now to make the most of the current rules and prepare for the future.

Capital Allowances
There’s a dazzling array of different capital allowances available right now. We guide you through this maze with some tips on how to get the most out of the current system. There are also some changes coming soon, including the ending of the special 100% allowance for new electric cars.

Cash Basis
Starting this year (2024/25) the cash basis is more attractive and more accessible for most unincorporated businesses (sole traders and partnerships). We also look at the astonishing tax savings that may be available when you join or leave the cash basis.

Training Costs
Some welcome light has been cast on what has always been a tricky grey area for sole traders and partnerships: the tax deductibility of their own training costs.

Double Cab Pick-Ups
A threatened change that didn’t happen. Yes, it’s our old tax-planning favourite, the double cab pick-up, often more tax efficient than an electric car.

Non Doms
Another truly fundamental change, removing the advantages enjoyed by non-domiciled individuals. However, there's plenty of time to put some critical tax planning steps in place and avoid the worst of the damage, plus there are new opportunities opening up for some long-term non-UK residents.

Inheritance Tax
Why some people may urgently need to change their wills to save their beneficiaries thousands of pounds in inheritance tax. There’s also both good and bad news for agricultural property owners.

ISAs
A raft of recent changes that have made ISAs more flexible.

Click here to read the full contents listing and first section of the book