As Guy Fawkes and Halloween fade into memory, the focus now dramatic US election results and the potential global economic implications of the final outcome. Meanwhile, the UK has recently seen the unveiling of a new budget by the Labour government, with significant changes affecting various areas of financial policy.
One of the key highlights of the budget is the increase in the national minimum wage, which will see a substantial rise of 6.7% to £12.21 for full-time workers. Additionally, individuals aged between 18 and 20 will see their minimum wage increase from £8.60 to £10, reflecting a commitment to improving standards of living for younger workers.
Employers will also be impacted by changes in national insurance contributions (NIC), with the rate set to increase to 15% from April 2025. The reduction of the secondary threshold to £5k further underscores the government’s efforts to address fiscal challenges.
Capital gains tax (CGT) changes are also on the horizon, with the lower rate set to increase to 18% and the higher rate to 24%. Notably, CGT rates on residential property will remain unchanged, providing clarity for property owners.
Inheritance tax (IHT) policies will see a freeze on the threshold extended until 2030, while inherited pensions will now be subject to IHT from April 2027. Business Asset Disposal Relief (BADR) will also undergo adjustments, with the CGT rate for this relief set to rise to 14% in April 2025 and further to 18% in April 2026.
At Gross Klein Wood Accountants Peterborough, we understand the importance of staying informed about these financial developments. Our team of experts is dedicated to providing tailored solutions for your business needs. Contact us today to ensure that you are well-equipped to navigate the changing financial landscape with confidence.
Recent Comments