UK and International Tax news
Draft Finance Bill 2024-25
Tuesday 26th November 2024
Following the Autumn Budget of 30 October 2024, the Finance Bill 2024-25, which will give statutory effect to some of the changes announced in the Budget, was introduced in the House of Commons on 6 November 2024. The Bill’s second reading is expected to take place on 27 November 2024.
HMRC published an overview of tax legislation and rates [OOTLAR] on the day of the Budget, with Chapter 1 thereof setting out the measures due to be included in the Finance Bill.
Some of the Chancellor’s policy proposals had already been announced by the government in a written statement to the House on 29 July 2024. This statement said the government would legislate for:
- 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
- reforming the taxation of carried interest in the private equity industry
- increasing the rate of the Energy Profits Levy from November 2024
- abolishing the Furnished Holiday Lettings tax regime
- increasing resources for HMRC to tackle the UK’s tax gap.
These have been included in the Finance Bill alongside provisions which make changes to R&D tax reliefs specifically for loss making R&D intensive SMEs, increases in tax rates for business asset disposal relief and investors’ relief, and changes to SDLT with increased rates for residential property.
Proposed changes to employer’s NICs, which are due to come into effect from April 2025, have been included in a separate bill, National Insurance Contributions (Secondary Class 1 Contributions) Bill, which was published on 13 November 2024.
Proposed changes to IHT and Agricultural Property Relief and Business Property Relief, 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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