The UK’s 2024 Budget has brought in a wave of significant tax changes that will impact investors, business owners, and anyone managing substantial assets. This video covers the critical updates on Capital Gains Tax (CGT), Business Asset Disposal Relief (BADR), employer National Insurance contributions, and a new enforcement of inheritance tax (IHT) on certain pension inheritances. Each of these adjustments presents new tax planning challenges, and understanding these changes is crucial for protecting your wealth and optimizing your financial strategies.
What You'll Learn:
Capital Gains Tax (CGT): How the increase in CGT rates could reduce the net return on your assets, especially for higher-rate taxpayers. We’ll explain who is most affected and how to structure your investments to reduce your CGT liability.
Employer National Insurance Contributions: With employer NICs rising to 15% and a lower starting threshold, business owners face higher costs. We’ll look at ways to manage payroll expenses and plan effectively to maintain your workforce.
Business Asset Disposal Relief (BADR): With BADR rates increasing, selling a business could mean higher taxes. We discuss the financial impact of this change and offer strategies for maximizing the after-tax value of business sales.
Inheritance Tax (IHT) on Pensions: The inclusion of certain pension inheritances within IHT could mean beneficiaries receive less than anticipated. We outline tax-efficient legacy planning strategies to help you preserve your wealth for future generations.
Real-Life Examples:
Capital Gains: See how a higher-rate taxpayer could face thousands more in CGT on share sales.
Employer NICs: Learn how increased NIC costs could affect the bottom line for small businesses.
BADR: Discover how a business sale could be impacted by the new 14% rate and why timing matters.
Inheritance Tax on Pensions: Find out how these changes affect legacy planning and the value beneficiaries receive.
Why This Matters:
The 2024 Budget’s new tax rules highlight a shift towards capturing more revenue from high-value assets and business disposals. For anyone with a large portfolio or a business, these changes mean that proactive financial planning is essential. Whether you're looking to minimize tax liability or prepare for a sale, understanding these updates can help you safeguard your wealth.
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www.rootparaplanning.com/uk-2024-budget
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00:00 Introduction
02:01 Increases in Capital Gains Tax
03:56 Increases in Employer’s National Insurance Contributions
06:12 Increases in Business Asset Disposal Relief (BADR)
08:06 Inheritance Tax on Pensions
10:02 Conclusion
⚠️ Disclaimer: No financial decisions should be taken based on the content of this video. The guidance contained within this video is subject to the UK regulatory regime and is therefore primarily aimed at viewers in the UK. Always take full individual advice first. Regulations and legislation governing taxation, investments and pensions may change in the future. The content in this video is accurate as of the 2024-25 tax year.