Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Budget 2024: £40bn tax hike through NIC and Capital Gains Tax leaves businesses on edge

by October 30, 2024
October 30, 2024
Budget 2024: £40bn tax hike through NIC and Capital Gains Tax leaves businesses on edge

In her debut Budget, Chancellor Rachel Reeves has introduced £40bn in tax hikes, largely focused on increasing employer National Insurance Contributions (NICs) and implementing a temporary repatriation facility for non-domiciled individuals.

According to Nimesh Shah, CEO of Blick Rothenberg, while pre-Budget rumours had suggested sweeping tax changes, the actual announcements were more focused, though still significant in impact.

The primary tax increase is a £25bn rise from NIC changes. Starting April 2025, employer NICs will jump by 1.2 percentage points to 15%, with a lower NIC threshold of £5,000. For businesses, this means an additional cost of £615 per employee, creating substantial expense for SMEs. A business with five employees earning £50,000 each will see their NIC bill increase by over £5,500.

Capital Gains Tax (CGT) also saw adjustments, with rates rising to 18% for basic-rate taxpayers and 24% for higher-rate taxpayers. Although CGT changes were less severe than anticipated, entrepreneurs will feel the impact, as the Business Asset Disposal Relief’s tax-saving potential falls to £60,000 by 2026. The carried interest regime for private equity also faces a hike, effectively increasing CGT on carried interest to 32% from April 2025, and further bringing it within the income tax and NIC scope from 2026.

The Budget introduced a temporary repatriation facility for non-domiciled individuals, allowing them to remit overseas funds at a reduced 12% tax rate for two years. This initiative is expected to generate £12.7bn in revenue. However, the move has left many non-doms considering their options, especially with the looming inheritance tax implications of previously announced reforms.

Family businesses face new challenges with a £1 million cap on Business Property Relief and a 50% discount thereafter. Although these changes take effect in 2026, Shah advises early planning, noting that anti-forestalling measures on lifetime transfers could complicate efforts.

Shah’s overall take on the Budget is mixed; while it avoided the more severe changes that many feared, it leaves room for more tax hikes in the coming Spring Budget. Businesses and investors will need to monitor developments closely as they navigate the evolving fiscal landscape.

Read more:
Budget 2024: £40bn tax hike through NIC and Capital Gains Tax leaves businesses on edge

0
FacebookTwitterGoogle +Pinterest
previous post
‘No such promise’: Johnson blasts Dem accusations he vowed to end ObamaCare as ‘dishonest’
next post
More than Just a Tax Cut: the Case of Child Tax Credit Reform

You may also like

MPs set to scrutinise government crypto hub plans...

August 5, 2022

Deciphering the Polygraph: A Powerful Tool for Truth...

June 16, 2023

Record number of public electric vehicle chargers installed...

January 3, 2023

The standing desk revolution: Why I finally gave...

September 30, 2024

Key advantages of acquiring services by Walletto in...

September 26, 2022

The 3 biggest challenges in building a tech...

January 19, 2024

Ten million calls to HMRC go unanswered as...

September 3, 2023

Lords report urges shift beyond retail to revitalise...

November 28, 2024

UK Economy Stagnates in April Amid Wet Weather

June 12, 2024

Why You Should Use Market Research Services to...

May 24, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Record Student Visa Denials Before Trump: 41 Percent Rejected in 2024

      May 30, 2025
    • Netflix accused of copying show idea by ‘Queen of bling’ Celia Sawyer

      May 30, 2025
    • Reform UK becomes first British political party to accept Bitcoin donations, says Farage

      May 30, 2025
    • UK business confidence jumps to nine-month high as trade tensions ease

      May 30, 2025
    • Bailey urges Starmer to deepen EU ties to soften Brexit blow and counter Trump tariffs

      May 30, 2025
    • Royal family’s wine merchant to open first US store in Washington

      May 30, 2025

    Categories

    • Business (8,104)
    • Investing (1,997)
    • Politics (15,434)
    • Stocks (3,115)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved