PERSONAL TAX ALLOWANCE

Freeze on Income Tax Threshold – remaining at £12,570 until April 2028 when it will be reassessed.

CORPORATION TAX RATE

The main rate of corporation tax has remained at 25% for profits over £250,000 and for profits under £250,000 it will remain at 19%.

CAPITAL GAINS TAX (CGT)

CGT Rate

  • the main rates of Capital Gains Tax that apply to assets other than residential property and carried interest from 10% and 20% to 18% and 24% respectively, for disposals made on or after 30th October 2024
  • the rate of Capital Gains Tax that applies to trustees and personal representatives from 20% to 24% for disposals made on or after 30th October 2024
  • the rate of Capital Gains Tax that applies to Business Asset Disposal Relief and Investors’ Relief from 10% to 14% for disposals made on or after 6th April 2025, and from 14% to 18% for disposals made on or after 6th April 2026.

The rates of Capital Gains Tax that apply to residential property disposals (18% and 24%) will remain unchanged.

60 day CGT reporting for UK residential property disposals – There were no changes to the reporting and payment on account obligations for chargeable gains on UK residential property. The deadline to report and pay CGT remains at 60 days after the completion date.

NATIONAL INSURANCE RATES

From April 2025 there will be an increase in Employer National Insurance Contributions by 1.2% to make it 15%, and the primary NI threshold will reduce from £9,100 to £5,000.

EMPLOYMENT ALLOWANCE

The employment allowance has increased to £10,500 per tax year.

NATIONAL MINIMUM WAGE – NEW RATES FROM 1st APRIL 2025

The new national minimum wage rates from 1 st April 2025 are as follows:

  • £12.21 per hour – 21 yrs. old and over
  • £10.00 per hour – 18-20 yrs. old
  • £7.55 per hour – under 18yrs. old
  • £7.55 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

HMRC – SELF EMPLOYED TAX RETURNS MTD (Making Tax Digital)

HMRC still plan to bring in MTD for all self-employed and unincorporated landlords (with a property income or gross income over £20,000) this was delayed and is currently set to start from 1st April 2026.

HMRC INTEREST RATES

HMRC have increased the interest rate for late tax payments, the interest rate will be base rate plus 4% from 6th April 2025

INHERITANCE TAX (IHT)

The IHT threshold remains at £325,000. However, from 2027 any inherited pension pots will now be subject to IHT. For IHT advice/planning please speak to your financial advisor.