Labour's First Budget

It is speculated that the rate of capital gains tax will be aligned to Income tax, this could mean an increase from 20% to 45% in some cases, or in respect of property 24% to 45%.

If you are considering selling an asset you should look to do it before the budget, You do not have to complete the sale but get to the binding contract stage and this is the date that triggers the tax.  You could also look to rebase the cost of any asset by selling and having your spouse purchase back or moving it into an ISA or corporate structure such as a family investment company, This could trigger an immediate charge but offer a potential saving of up to 25% long term.

It is speculated that the reliefs available to farmers and Unquoted businesses will be abolished so if you are considering a gift, you should do it now while the gifts are available. There could be changes to the rate and other reliefs as well.

The main change here will be to the Domicile rules, and this could benefit expats I the long term so watch this space, we will be commenting on this at great length as the rules unfold.

There are expected to be big changes here, and this could cover the tax-free lump sum, tax relief on contributions and exposure of the funds to Inheritance tax.

The message at this time is if you are considering a contribution make it before the budget and if you are looking to take your tax fee lump sum also do this before the budget.

The rate of tax on dividends could well be increased, so if you are thinking of making a dividend or have large retained profits now is the time to consider making a payment.  Moreover, if you are a non-dom in the UK already, you should consider holding back on any remittances until after 5^th April 2025.

We will of course be keeping a very close eye on statements made and actions taken by the government in the run-up to the budget and will provide updates where necessary.