What are the key points that may affect you or your business?

National Insurance

The budget included a rise in National Insurance paid by businesses on salaries, with an increase to 15% on salaries above £5,000 from April. This was previously 13.8% on salaries above £9100.  

An employment allowance, which may be used by smaller companies to reduce their National Insurance liability is to be increased from £5000 to £10500.

Minimum Wage

It has been announced that the minimum wage for over 21 year olds is to rise to £12.21 from April and also the minimum wage for 18 to 20-year-olds will increase  from £8.60 to £10, as part of a plan to move towards a single rate for adults.

Capital Gains Rates On Sale Of Shares

For shareholders in companies, the basic rate capital gains tax on profits from selling those shares will be increased from 10% to 18%, with the higher rate will rise from 20% to 24% which may affect the decisions of shareholders as to whether they wish to sell their shares. Although for some shareholders, the Business Asset Disposal Relief may still be applicable to their profits despite rumours that it would be cancelled by the government.

Stamp Duty Land Tax

The Stamp Duty Surcharge for those buying a second property (in addition to their residential property) has been increased to 5% from 3% which in some cases is an increase that may cost buyers thousands of pounds more than initially estimated on their purchases.

From 31^st March 2025, the amount upon which a person will need to pay Stamp Duty Land Tax on their main home has now been lowered from £250,000 to £125,000 meaning the cost of buying a house increases for many and the threshold at which first-time buyers are required to pay stamp duty land tax has been lowered, from £425,000 to £300,000 which again may increase the cost of buying a first home.

Please note that where references to taxes, applicable rates and potential reliefs thereof, are made in this piece it is purely information provided by HM Government, BTTJ is not a firm of tax advisors and does not intend to provide tax advice in this article.

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