While the Autumn budget delivered this week by the first female Chancellor of the Exchequer, Rachel Reeves, was arguably a step forward for feminism, it was more notable for the significant changes to tax:
- Inheritance tax – the current thresholds will remain the same until 2030, so eventually more estates will be paying this tax as property values rise. After 6 April 2026, estates with farms and businesses will only be able to claim 100% agricultural or business property relief on the first £1 million. Estates worth more than that will only be able to claim 50% relief on the rest. Some shares will also count towards this threshold.
- Capital gains tax – the main rates have risen to 20% and 24%, effective immediately.
- Stamp duty land tax – the rate of tax for buyers of additional residential properties has immediately increased from 3% to 5%. Companies buying residential property for over £500,000 will also now pay 17%, up from 15%. Other rates and thresholds will still change on 1 April 2025, including the relief threshold for first-time buyers.
Our publications have been updated as necessary.
