As the Chancellor unveiled the Autumn 2024 budget, fresh tax tweaks and funding shifts are set to reshape the business landscape – raising the stakes for every UK entrepreneur and executive. Here’s what every business-owner needs to know to stay ahead in a post-budget landscape.
Business Asset Disposal Relief
The business asset disposal relief (BADR), which reduces the amount of capital gains tax (CGT) paid when a business owner disposes of a qualifying asset, will remain at 10% until 2025.
BADR rates will face reform and hikes from April 2025:
- April 2025: Increasing to 14%; and
- April 2026/27: Increasing to 18%.
Business Property Relief and Agricultural Property Relief
The Chancellor has announced that from April 2026, the potential 100% reliefs offered by business property relief (BPR) and agricultural property relief (APR) will be limited to the first £1,000,000 of combined qualifying business assets and agricultural property.
As a result, any assets that benefit from APR and/or BPR, valued at over £1,000,000, will be subject to the full IHT regime.
Capital Gains Tax
From today, capital gains tax (CGT) will face the following increases:
- Lower rate CGT will rise to 18% (from 10%); and
- Higher rate CGT will rise to 24% (from 20%).
Some Positive-Take Homes
- Corporation tax thresholds will remain the same until the next budget.
- The Enterprise Investment Schemes will be extended until 2035.
Ultimately, the Autumn 2024 budget landed softer than expected, offering businesses some welcome relief from the storm clouds we’d been bracing for.
How can Goughs help?
Goughs can help you and your business, providing tailored advice to help you navigate the new tax rules. Our Corporate team can assist you with your business succession-planning, ensuring that you are able to maximise reliefs and minimise the adverse impacts of any future tax rises.
What is clear from today is that you cannot afford to delay putting your succession planning in place. Act now to ensure that you are not caught by any upcoming changes over the course of the next 12 to 24 months.