The VAT registration threshold

From 1 April 2025 the VAT registration threshold remains at £90,000 and the deregistration threshold at £88,000.

VAT imposition on private school fees

From 1 January 2025, private school fees for education and vocational training will no longer be VAT-exempt and will be subject to the standard 20% VAT rate. Prepayments made after 29 July 2024 will also be affected.

Stamp duty

From 31 October 2024, individuals buying additional residential properties in England and Northern Ireland will face a 5% Stamp Duty Land Tax (SDLT) rate, up from 3%. This change also applies to companies and other non-natural persons purchasing residential property. Additionally, the SDLT rate for companies buying residential properties over £500,000 will increase from 15% to 17% from the same date.

Miscellaneous

  • The government is dedicated to implementing Making Tax Digital for Income Tax Self Assessment, set to begin in April 2026. It plans to expand the programme to individuals with incomes over £20,000 by the end of this Parliament, with specific timing to be announced at a future fiscal event.
  • HMRC has introduced several compliance initiatives, including:
    • HMRC has introduced several compliance initiatives, including:
    • Hiring more compliance and debt management staff
    • Upgrading debt management IT systems
    • Pre-populating tax returns with Child Benefit data for the High Income Child Benefit Charge
    • Raising the late payment interest rate on unpaid tax liabilities by 1.5%.