This week’s Spring Statement brought two announcements that will matter to anyone running their own business or earning income from property.
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Time is running out to make personal pension contributions for the 2024/25 tax year
The end of the tax year is fast approaching, and if you are considering making personal pension contributions, it is important to plan ahead to avoid missing the deadline.
Major changes to Inheritance Tax from April – How new residence rules and the end of non-dom status could affect your estate
Major reforms to the UK’s Inheritance Tax (IHT) regime are on the horizon, with sweeping changes, particularly affecting non-domiciled individuals (non-doms) set to take effect from 6 April 2025.
Capital Gains Tax clampdown – What HMRC’s surge in investigations means for you
HM Revenue & Customs (HMRC) has intensified its efforts to track down unpaid Capital Gains Tax (CGT), with recent figures showing an increase in compliance activity.
What are the Inheritance Tax benefits of writing a life insurance policy in trust?
Inheritance Tax (IHT) remains a concern for many individuals seeking to preserve family wealth across generations.
How neonatal care leave will affect your payroll and policies
From 6 April 2025, employers will need to accommodate a brand-new statutory entitlement: neonatal care leave and pay.
Welcome news for thousands as Income Tax reporting threshold set to increase
In a move to simplify tax compliance and boost the economy, the Government has announced that the Income Tax Self-Assessment (ITSA) reporting threshold will rise from £1,000 to £3,000.
The tax traps of director’s loans – How to avoid unnecessary charges
Director’s loans can be a useful way to access company funds, but if not managed properly, they can lead to unexpected tax liabilities.
Road tax changes for electric vehicles – How to secure an extra 12 months tax-free
If you own an electric or low-emission vehicle, you have likely enjoyed the benefit of paying zero road tax.
Planning your exit? Watch out for the BADR changes
If you are thinking about selling your business, timing could be everything.
Business Asset Disposal Relief (BADR), formerly known as Entrepreneurs’ Relief, helps business owners reduce their Capital Gains Tax (CGT) liability when selling qualifying assets.
However, with adjustments to BADR coming in April 2025, it is important to make plans for an exit strategy sooner rather than later.
Current BADR rules and the upcoming change
BADR currently allows eligible sellers to pay a reduced CGT rate of 10 per cent on gains up to £1 million over their lifetime.
This is a substantial saving compared to the standard CGT rate of up to 24 per cent.
However, from April 2025, this preferential rate rises to 14 per cent, and from April 2026, it increases again to 18 per cent.
So, if you are a business owners considering a sale, should you bring forward your plans to lock in the lower tax rate?
Consider your options before a rushed sale
While selling before the rate rise may seem like a straightforward decision, there are other factors to consider:
- Is the market favourable?
- Is your business in the best possible position to attract buyers?
- Does the timing coincide with your personal financial goals?
Anti-forestalling rules also mean that certain transactions, such as share reorganisations, loan notes or sales to connected parties, could be caught under the new rates.
If you have structured a sale or disposal in recent years, you may need to review your position to avoid unexpected tax liabilities.
With the deadline fast approaching, you should act immediately.
Speak with our experts today for exit strategies and advice on the reliefs available to you.