ADVICE
Financial reckoning – Baines Jewitt experts have reflected on the implications of the recent Budget .
Business Asset Disposal Relief and Investors ’ Relief will increase from 10 % to 14 % for disposals made on or after April 6 2025 . The rate will increase again to 18 % for disposals made on or after April 6 2026 .
Inheritance Tax Inheritance Tax nil rate bands The nil rate band has been frozen at £ 325,000 since 2009 and this will continue to be frozen up to April 5 2030 . An additional nil rate band , called the ‘ residence nil rate band ’, is also frozen at the current £ 175,000 level , as is the residence nil rate band taper starting at £ 2m . These are also frozen until April 5 2030 .
Unused pension funds and death benefits The government will bring unused pension funds and death benefits payable from a pension into a person ’ s estate for inheritance tax purposes from April 6 2027 .
Agricultural Property Relief & Business Property Relief From April 6 2026 , agricultural and business property will continue to benefit from the 100 % Inheritance Tax relief up to a limit of £ 1m . This is a combined limit for both agricultural and business property . Property in excess of the limit will benefit from a 50 % relief .
Making Tax Digital for Income Tax Self- Assessment The government is committed to delivering Making Tax Digital for Income Tax Self- Assessment , which is due to start in April 2026 .
The government will expand the rollout of the programme to those with incomes over £ 20,000 by the end of this parliament and will set out the precise timing for this at a future fiscal event .
Employment The government has announced increased rates of the National Living Wage ( NLW ) and National Minimum Wage ( NMW ) which will come into force from April 1 2025 . The rates which will apply are as follows :
From 1 April 2025
NLW ( Aged 21 +)
NMW ( aged 18-20 )
This means for an NLW worker working 37.5 hours per week , the change will increase their annual gross pay by £ 1,505.54 and their monthly gross pay by £ 125.46 .
Economic growth Jed says : “ According to the government , growth is set to increase to 2.0 % in 2025 and 1.8 % in 2026 , before settling close to its trend rate in the later years of the forecast . The Office for Budget Responsibility judges that the latest Budget will , if sustained , permanently increase the size of the economy in the long-term .”
NMW ( aged 16-17 )
£ 12.21 £ 10 £ 7.55 £ 7.55
Apprentices
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The voice of business in the Tees region | 41