Budget rumours - CGT, IHT and NI set for increases
Report on latest Budget tax rumours as at Friday 18 October 2024
www.tax.org.ukLatest CGT news focuses on UK changes announced in late 2024–2025 and ongoing consultations. For precise, up-to-date details, here are the most relevant recent developments and reliable sources:
- Main CGT rate changes effective from 30 October 2024: lower rate up to 18% and higher rate up to 24% (applies to most disposals), with BADR/investors’ relief adjustments progressing over 2025–2026. This is from ICAEW’s summary of Budget changes.[3]
- Changes to reliefs and anti-avoidance: incorporation relief to be claimed rather than automatic from 6 April 2026; tightened rules on non-resident CGT and share reorganisations. These adjustments are part of the broader CGT package accompanying the Budget.[3]
- EOT-related CGT relief revised: relief on disposals to employee ownership trusts (EOTs) reduced from 100% to 50% with immediate effect (26 November 2025), impacting how gains for disposers are treated; remaining 50% can be held over.[1]
- Budget rumours and discussions (late 2024): reports about potential further CGT rate changes, expansions of CGT to death-triggered gains, and possible “exit tax” concepts; these remained rumours at the time but highlight policy direction discussions.[2]
Why this matters:
- If you’re a UK resident with capital gains considerations, planning around the timing of disposals, reliefs (BADR, investors’ relief), and potential changes to reliefs and anti-avoidance provisions could materially affect tax outcomes.[1][3]
- Non-UK residents or entities with cross-border structures should review new non-resident CGT rules and possible changes to company reorganisations.[1][3]
If you’d like, I can:
- Narrow to your country (UK vs other jurisdictions) and specific asset types (shares, business disposals, EOT transfers).
- Summarize the current-year CGT rates, reliefs, and thresholds applicable to your situation.
- Create a quick checklist of actions to consider before key dates (e.g., 6 April 2026 for incorporation relief changes).
Would you like a country-specific CGT snapshot and a personalized action list? If you have a rough outline of disposals or assets, share them and I’ll tailor the guidance.
Citations:
- UK CGT rate changes and reliefs overview (ICAEW).[3]
- Budget rumours around CGT and related measures (Tax Institute summary).[2]
- EOT relief changes and related CGT adjustments (ICAEW).[1]