2024/25 Tax Card: Stay Informed with the Latest Rates

26 March 2024

We’re pleased to announce the availability of our annual tax card, which will keep you informed about the latest tax rates for the 2024/25 tax year.

Budget Day Surprises

While most tax rates were announced last fall, the Chancellor revealed some unexpected changes during Budget Day. These included adjustments to Income Tax and National Insurance following days of speculation.

Key Tax Changes to Know

  • Mostly Frozen Allowances: Most major tax allowances and reliefs will remain at their 2023/24 levels.
  • High-Income Child Benefit: The high-income child benefit charge threshold increases to £60,000. This benefit won’t be entirely withdrawn until income reaches £80,000.
  • New Pension Allowances: With the abolition of the pension lifetime allowance, two new allowances are introduced:
    • Lump sum and death benefit allowance: £1,073,100
    • Lump sum allowance: £268,275
  • Reduced Dividend Allowance: The dividend allowance for 2024/25 is cut from £1,000 to £500.
  • Capital Gains Tax Changes: The capital gains tax exemption amount is lowered to £3,000 for 2024/25. However, the higher rate of capital gains tax (CGT) for residential property disposals decreases from 28% to 24%, effective April 6th, 2024.
  • VAT Registration Thresholds: The VAT registration threshold increases to £90,000 from April 1st, 2024, while the de-registration level rises to £88,000.

Get Your Free Tax Card

Download your copy of our comprehensive 2024/25 Tax Card for a full breakdown of the latest rates and allowances.

Budget Summary and Year-End Tax Planning

For a deeper dive into the recent Budget announcements and how they might impact you, download our Budget Summary. Additionally, with the tax year coming to a close, it’s a great time to consider year-end tax planning strategies. We can help you identify opportunities to minimise your tax burden. Contact us today to discuss your individual situation.

We’re Here to Help

If you have any questions about how these new tax rates might affect you or the recent Spring Budget announcements, please don’t hesitate to contact us.

Author
Jenny Sharma FCCA CTA,Senior Tax Manager
Tax Card 2024-25

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