Yesterday saw the Rt Hon Rachel Reeves MP take to her feet to deliver the new Labour government’s first Budget. It was the longest awaited budget after an election (117 days) in over 50 years and included a number of significant changes which are being covered and analysed in the press as we write.
Also of interest, however, was what was left out. There were no changes to ISA allowances each year or overall (though the plans for a “British ISA” have been scrapped); no changes to pension contribution tax relief or pension “tax free cash” amounts; and no cap on lifetime gifting, to name a few.
The resulting tax landscape will take time to explore and understand fully – legislation was still being published and added to by the Government late into last night.
Meanwhile, we are in the process of reviewing our clients’ arrangements with a view to understanding what, if any, actions need to be taken urgently (for example, potentially before 5 April 2025), and what changes may need to be factored into our clients’ longer term strategies.
As ever, we shall be in touch where we believe there are beneficial changes to make in the short term, and shall ensure any longer term strategic changes are discussed fully as part of our ongoing reviews with our clients.
However, if you have any queries in the meantime, please feel free to get in touch with your usual planning team, who will be happy to help you.