Chancellor Rachel Reeves has just delivered her first budget, after weeks of speculation. This was the first UK budget we’ve seen under a new administration in 14 years.
I’m James Norton and here are the top takeaways from the Autumn Budget 2024, and more importantly, what they mean for you.
Capital-gains tax, or CGT, is a tax on profits from selling certain assets. The chancellor confirmed an increase of CGT on shares, effective immediately.
This rises from 10% to 18% for basic-rate taxpayers, and from 20% to 24% for higher-rate tax payers.
But both ISAs and pensions can protect you from CGT as well as other types of tax.
The good news is, the annual ISA limit will be held at £20,000 until 2030, while the annual pensions allowance remains at £60,000.
While there were no changes to pension tax relief or pension tax-free cash, some pension-holders could be affected by new rules on inheritance tax, or IHT.
Currently, pension assets can typically be passed onto beneficiaries without being subject to IHT. But from April 2027, any money left in your pension will be included in your estate, which means there may be some tax to pay.
This might be something for those with larger estates to consider when tax planning.
We may see further developments over the coming days, but the good news is that most of the tax benefits for those looking to save for the long-term in an ISA or pension remain intact.
Investment risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Any tax reliefs referred to are those available under current legislation, which may change, and their availability and value will depend on your individual circumstances. If you have questions relating to your specific tax situation, please contact your tax adviser.
The information contained herein is for educational purposes only and is not a recommendation or solicitation to buy or sell investments.
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