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What does the October budget mean to you?

Our wills, trusts and estates team summarise the key provisions on capital gains tax and inheritance tax and how they are likely to affect our clients - especially farmers and small businesses.
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Anna Neil
Published: 30 October 2024

What does the October budget mean to you?

Capital gains tax

Perhaps we breathed a sigh of relief that the increase in Capital Gains Tax (CGT) was not as bad as the predictions led us to believe.   The predicted rise to the tax rate on the sale of residential property has not occurred with rates remaining at 18% and 28%.    Capital gains on other assets (shares for example) will hit the lower rate tax payers most with an increase of 8% (10% – 18%).  Higher rate tax payers face an increase of 4% (20% – 24%).

The greater impact is on entrepreneurs.  Whilst the chancellor indicated support for entrepreneurs by maintaining the business asset disposal relief, the lifetime limit was frozen at £1m and the taxation rate increased from 10% to 14% from April 2025 to 18% from April 2026. 

 

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