UK and International Tax news
Finance Act 2025
Tuesday 25th March 2025
Following the Autumn Budget of 30 October 2024, the Finance Bill 2024-25 has now passed through the House of Commons and House of Lords and received Royal Assent.
The Finance Act 2025 gives statutory effect to some of the changes announced in the Autumn Budget, including the following measures:
- introducing VAT on private school fees and removing private schools’ eligibility for charitable relief under business rates in England
- abolishing the tax regime available to non-UK domiciled individuals, with long term residents subject to UK tax on worldwide income and gains.
- introducing a new residence based regime for inheritance tax
- increasing the main rates of capital gains tax from 10% and 20% to 18% and 24% respectively for disposals on/after 30 October 2024
- increasing the CGT rates for gains qualifying for BADR and IR from 10% to 14% with effect from 6 April 2025 and to 18% from 6 April 2026, whilst the lifetime limit for IR is reduced from £10m to £1m from 30 October 2024
- abolition of the furnished holiday lettings tax regime
- increases in rates of SDLT for purchases of additional dwellings and purchases by companies on or after 30 October 2024.
Proposed changes to employer’s NICs are included in a separate bill [National Insurance Contributions (Secondary Class 1 Contributions) Bill], which has reached the final stages of its passage through Parliament.
Proposed changes to Agricultural Property Relief and Business Property Relief for IHT purposes, which are to come into effect from April 2026, will be included in a future Bill.
If you would like more information on the above, please contact Keith Rushen on 0207 486 2378.
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