MENU

THE BUDGET – OCTOBER 2024
30th October 2024
5 minute read

I am sure that you will have followed the news closely in the last couple of days and there will be a lot of comment about the changes announced in the Budget. If you want to know more then please feel free to contact us.

As a firm of financial planners it is important to be up to date about any changes to our tax system and the biggest changes in the Budget are based on Employer National Insurance rates, Inheritance Tax and Capital Gains Tax.  National Insurance rates will indirectly affect the whole country but the other changes will impact different sections of our society.

INHERITANCE TAX

This is the one that I would like to highlight as this is the most important change for our clients and this means that some will have a need to make changes to their planning and even start spending their pension rather than using it mitigate Inheritance Tax (IHT).

GENERAL ALLOWANCES

The Inheritance Tax nil rate and residential rate bands of £325,000 and £175,000 respectively will be frozen at these levels until 2030. The nil rate band has been frozen at this level since 2009. The residence nil-rate band will continue to be tapered for estates over £2 million.

PENSIONS

The Chancellor also confirmed that ‘inherited pensions’ will be brought into Inheritance Tax from 6th April 2027, this “will restore the principle that pensions should not be a vehicle for the accumulation of capital sums for the purposes of inheritance, as was the case prior to the 2015 reforms.”

This is a big change and we will need to carefully consider how our advice will now change based on this considerable shift in the UK tax for pensions (Defined Contributions).

We look forward to talking to you about this and may contact you to revisit this subject ahead of your normal annual review meeting.

CATEGORIES

LATEST NEWS

UK TAX: THE PAIN DEFERRED – WHY THE REAL IMPACT COMES LATER

UK TAX: THE PAIN DEFERRED – WHY THE REAL IMPACT COMES LATER

8th December 2025

Financial markets were primed for sharp, immediate tax rises. Commentators warned of fiscal tightening. Yet when the Chancellor delivered the measures, the initial reaction was muted. Markets barely moved. The plaster came off—and it didn’t hurt.

THOUGHTS ON THE IMPACT OF THE BUDGET

THOUGHTS ON THE IMPACT OF THE BUDGET

27th November 2025

In the weeks leading up to the UK Budget, the industry has struggled to read the signs from the Treasury as to what was most likely to happen in the Autumn Statement and what new taxes were to be introduced – we just knew that tax would rise.

IS IT ALL DOOM & GLOOM?

IS IT ALL DOOM & GLOOM?

10th November 2025

If you watch or read the news at the moment, it’s easy to think the world is falling apart. Political tensions, elections, and talk of global conflict seem to dominate every headline. It can all feel a bit bleak – and when you’re also hearing that some professional investors are ‘turning cautious,’ it’s natural to wonder whether it’s time to be worried. Yet, strangely, the investment markets don’t appear to agree with the headlines.

THE GROWING PROBLEM OF CAPITAL GAINS TAX & INDIVIDUAL SAVINGS ACCOUNTS

THE GROWING PROBLEM OF CAPITAL GAINS TAX & INDIVIDUAL SAVINGS ACCOUNTS

29th October 2025

Over the past few years, one of the quietest but most significant shifts in personal taxation has been the steady tightening of Capital Gains Tax (CGT) allowances. What was once a generous £12,300 annual exemption has been reduced to just £3,000 for the 2024/25 tax year – and there’s every chance that future Budgets or the forthcoming Autumn Statement could push rates higher still.