Tax rises totaling £40 billion are planned, according to Ms. Reeves. From next April, increases will affect Employers’ National Insurance contributions (NICs) and Capital Gains Tax rates. Inheritance Tax will start applying to inherited pensions in April 2027, with reforms also coming for reliefs on agricultural and business asset transfers. VAT will now apply to […]
Income Tax Bands and Thresholds The basic tax rate stands at 20%, covering income up to £37,700 for the 2025/26 tax year. This establishes a 40% tax rate threshold at £50,270 for individuals who qualify for the full personal allowance. This £37,700 band for the basic rate will remain unchanged until April 2028. Likewise, the […]
Employee National Insurance Contributions As of April 2024, employee NICs are set at 8%, while employer NICs will increase from 13.8% to 15% in April 2025. The Secondary Threshold, where employer NICs apply, will drop to £5,000 from 2025 to 2028, adjusting with inflation thereafter. The Employment Allowance will rise to £10,500 in April 2025, […]
Tax Rates Starting 30 October 2024, Capital Gains Tax rates will rise for disposals, excluding residential property and carried interest. The basic rate will increase from 10% to 18%, while the 20% rate will rise to 24%. The rates for residential property disposals (18% and 24%) will remain unchanged. The rate for trustees and personal […]
Tax Rates From April 2025, the Corporation Tax rates will stay as they are: a 25% rate for companies with profits above £250,000, a 19% rate for profits up to £50,000, and a gradually increasing rate for profits between £50,001 and £250,000 due to marginal relief. Capital allowances The Full Expensing rules provide companies a […]
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 […]
