Budget newsletter

Effective Date	Tax Change / Policy	Impact on You & Your Business
Immediately	CGT relief when selling to an ESOT reduced from 100% to 50%	Restricted application
Ongoing	Income tax thresholds freeze extended to April 2031	Further fiscal drag
April 2026	Minimum wage increases – hourly rate for over 21s will rise to £12.71	Employer burden
April 2026	Dividend tax rates increasing to 10.75% and 35.75%	Makes current director/shareholder remuneration arrangement marginal
April 2026	Green levies from energy bills removed	Cheaper energy
April 2026	EIS and VCT expanded for larger companies with higher raise limits, but investor tax relief cut from 30% to 20%	Lower investor tax relief despite expanded limits
April 2026	WDA rate reduced to 14%. New rate of FYA 40%	Minimal impact as Annual Investment Allowance still £1m
April 2027	Income tax rates payable on interest and rental income to be increased to 2 percentage points above normal income tax rates	Increasing self-assessment bills
April 2027	Cash ISAs – maximum reduced to £12,000 p.a. (unless over 65)	Encouraging investment in the markets
April 2027	Student loan – Plan 2 – interest rate frozen at 7.9%	Impacts borrowers who started courses between 2012 and 2023
April 2028	Mansion tax introduced on a sliding scale according to property value (£2,500 per year for lowest band above £2m)	High value council tax charge, administration to be argued over
2029	Maximum salary sacrifice for pension contributions limited to £2,000	Likely to reduce contributions as NI charges to both employers and employees increase
2028-29	Electric and hybrid cars to pay a road tax based on mileage driven	Administration to be argued over the next few years