The Autumn Budget – the first budget from the new Labour government – is due to be announced on the 30th October 2024. The chancellor is anticipated to announce significant tax changes and measures to raise revenues for the government.
But what does this mean for you and your business? This blog is designed to provide you with advice on what to do in the coming weeks before the budget – so you are informed and prepared as thoroughly as possible. We’re going to focus on areas that have the potential to change and explore what you can do to both expect and take advantage of those changes.
Income Tax
Let’s start with Income Tax. If the chancellor announces a change in thresholds or rates, this may affect personal and business tax planning. In preparation for this possibility, you should review their current income and tax bands. By anticipating changes, you can plan accordingly and maximise tax-efficient savings and investments, such as ISAs or pension contributions. This will avoid any surprises if new policies are implemented.
Corporate Tax and Business Reliefs
It would also be productive to review your corporate tax positions. If any announcement son changes to corporation tax rates or investment incentives are expected, consider planning large capital expenditures or business investments now. Additionally, stay informed about any potential modifications to Research and Development tax credited, capital allowances, or other business reliefs. If you can anticipate changes, you are able to adjust your financial strategies accordingly.
Capital Gains Tax
For those of you who are holding assets, particularly property and shares, it is pertinent to assess your portfolios for potential gains. Any expected changes in Capital Gains Tax rates could influence whether it’s better to dispose of assets before or after the budget. By proactively assessing your portfolio, you can position yourself to take advantage of opportunities and mitigate potential risks within the upcoming budget.
Pension Contributions
You should also prioritise evaluating your pension contribution limits and consider maximising contributions ahead of the budget. If there are changes announced in tax relief or pension allowances, this could impact your saving strategies. By reviewing and potentially maximising your pension contributions ahead of the budget, you can optimise your retirement savings while also benefiting from any existing tax advantages.
Inheritance Tax
You also may want to revisit your IHT plans if you are planning estate strategies or gifting. As there are speculations about changes to IHT thresholds or reliefs, reviewing your plans now and possibly adapting your strategies will help you avoid potential pitfalls, optimise your estate, minimise tax liability, and ultimately benefit your beneficiaries.
Environmental and Green Incentives
Look out for potential environmental tax initiatives or green investment schemes, which could create new opportunities if you are focused on sustainability or energy efficiency. By staying informed, you can make strategic financial decisions that align with your green values as well as your long-term financial goals.
We hope this blog has provided you with some clarity and reassurance list ahead of the Autumn Budget. If you need any further support or would like to book a meeting to discuss potential changes or current tax strategies in more detail, please contact me here.