One of the key aspects to note was the reminder of previous tax changes made by the Government in the Autumn Budget.
Whilst Reeves noted the fact that these changes provided a foundation of a stronger economy, it’s worth remembering exactly where this “strength” comes from.
- An increase in the lower and higher rates of Capital Gains Tax to 18 per cent and 24 per cent respectively.
- An increased Employers National Insurance rate to 15 per cent from 13.8 per cent and a reduction of the threshold from £9,100 to £5,000.
- Abolishing the UK’s non-domicile regime and introducing policies to tax non-doms on their worldwide income.
- An increase in Stamp Duty Land Tax from three per cent to five per cent and a reduction in thresholds for first-time buyers.
- The introduction of VAT charges to private school fees.
- Changes to Business Asset Disposal Relief (BADR) that will take effect in the coming years. The current 10 per cent rate will remain until 6 April 2025, after which it will increase to 14 per cent, and then to 18 per cent from 6 April 2026.
Reeves made no attempt to roll back the previous changes – confirming that these increases are still going ahead.
Her Statement should serve as a timely reminder for business owners and individuals to revisit their tax planning strategies.
Just because today’s announcements lacked major surprises does not mean it is time to be complacent.