The Chancellor Rachel Reeves presented her first Budget on 30 October 2024. In her speech she stated the Budget ‘lays the foundations for growth while ensuring fairness, stability, and responsibility in the public finances’. The measures announced take effect across 2025 and beyond, with significant reforms to business taxation, inheritance tax, and support for households.
Current Tax Updates (2025)
- Full Expensing (replaces Super-deduction)
100% first-year allowance on new plant & machinery (main pool) + 50% FYA for special-rate assets. Permanent from 1 Apr 2023. - Stamp Duty Land Tax (SDLT)
Temporary nil-rate band ended. From 1 Apr 2025:- Standard nil-rate band: £125,000
- First-time buyers: 0% up to £300,000 (relief up to £500,000)
- Usual higher/additional property rates apply.
- Corporation Tax
Now fully in force:- 25% main rate (profits >£250k)
- 19% small profits rate (≤£50k)
- Marginal relief between £50k–£250k.
- Mortgage Guarantee Scheme → Freedom to Buy
From 15 Jul 2025, the 95% LTV scheme made permanent, supporting buyers at 91–95% LTV. - Business Rates Relief (England, 2025/26)
Retail, hospitality & leisure properties: 40% relief (cash cap £110,000). - R&D Regime
From 1 Apr 2024:- SME & RDEC merged into a single scheme (20% credit).
- PAYE/NIC cap on payable credits continues (£20k + 300% of PAYE/NIC).
Off-Payroll Working (IR35)
Since 6 Apr 2024, HMRC can set off tax/NICs already paid by a worker/PSC against the fee-payer’s liability to prevent double taxation.
