We hope this note finds you fit and well on this eve of Halloween.
Here is our summary of this week's Budget, a not so scary basket of defendable policies. You can download the full summary as a PDF at the end of this post.
The first budget of the Andy Burnham premiership is one of small and manageable deliverables. Growing the economy, incentivise small business, helping people back into meaningful work, all of which grow tax receipts to reduce national debt and increase defence spending. The policies and costs look to be defendable, a positive beginning.
The Key Points
Entrepreneurs relief is back for Founders, at 10% up to £10m lifetime gains, 6 April 2027.
Business Asset Disposal relief is halved to £500,000 lifetime gains, 6 April 2027.
First Year Allowances on main rate assets is increased from 40% to 50%, to encourage investment by the leasing sector, 1 January 2027.
As they are more mainstream, electric cars will no longer be eligible for their 100% first year allowance, 31 March 2027.
Tax rates on property income (rent) and savings income (interest) will increase to your marginal rate plus 4%, April 2027.
Thinking of Selling Your Business?
If you are thinking of selling your business, now is the time to plan for an early Summer completion, but not before 6 April 2027.
More Changes
On 1 April 2027, the National Living Wage and National Minimum Wage will both increase by 3.9% for all age groups.
From October 2027 online marketplaces will be responsible for collecting VAT on sales for UK VAT registered businesses.
From April 2027 the tax free mileage rate for more than 10,000 miles will increase from 25p to 35p per mile.
Get in Touch
If you would like to discuss how these changes affect you or your business, please get in touch with the MBS team: