Hopefully you don’t feel too let down by the Budget after all of the hype it seemed to be getting.
The Highlights (or Low-lights) of Rachel Reeve’s Budget
Here’s some of the highlights which will likely impact your financial planning
- There’s an increase to Capital Gains Tax rates and Stamp Duty Land Tax if you are buying an additional property
- Business Owners will now be paying more Employer’s National Insurance Contributions
- The biggest changes of all are around Inheritance Tax, including how pensions, Agricultural property and farms and Businesses will begin to fall in to the scope of Inheritance Tax
- Some light at the end of the tunnel with an indication that Income Tax and National Insurance Contribution thresholds will begin to rise with inflation again from April 2028.
What is slightly comforting is that it lacked a lot of the rumours around pensions, in particular changes to income tax relief contributions and tax free lump sums.
Anyway, here’s a summary video of it all:
We’ll be doing some more detailed breakdowns over the next few weeks as we get to know the full details, especially with the implications on Inheritance Tax for pensions, farmers and business owners
The Biggest Loser?
I just feel sorry for the large business owner who is having to increase your national minimum wage and pay the extra Employer’s NICs; you have a fleet of private jets; are under contract to complete on your 3 new holiday homes; you have stuffed your pension full to pass on to your triplets who are about to begin Private Schooling next September; have a chain smoking habit and taken a fancy to a nice watermelon ice vape for breakfast, oh and you have a massive farm which you bought 20 years as an inheritance tax planning ploy and now don’t know whether to pass it on with IHT, or sell and crystallise a massive capital gain?
But how many of that kind of person can there be?