The UK Autumn Budget of 2024 has introduced significant changes in taxes and rules. These changes will impact
how estates are handled after someone passes away. The key changes include:
– There will be no increase in the tax-free amount (£325,000) until 2030. This situation may lead to more people paying inheritance tax (IHT) as house prices rise.
– Starting in 2027, unspent pension money will be counted towards IHT, potentially resulting in more estates owing tax.
– From 2026, only the first £1 million of farm or business property will get full relief from IHT. Any value beyond that will get half relief.
– People living in the UK who are not originally from here can bring foreign money into the country. They will not have to pay extra tax for four years. This policy starts in 2025.
– Pensions will now count towards IHT, affecting estate tax liabilities.
– The state pension will increase by 4.1% next year, but the calculation method remains unchanged.
– New tax rules will apply to moving pensions overseas.
– Companies will pay more in National Insurance (NI). This change may affect the amount of money business owners can pass on in their estates.
– The tax rate for companies remains the same, but new guidelines will be introduced regarding future changes.
– The minimum wage will increase, which may affect business financial planning.
– Certain tax and NI thresholds will increase in line with inflation, potentially altering estate tax liabilities.
You need to adapt to these changes by carefully planning estates to minimize taxes. You should focus on finding all potential heirs. Handle foreign assets with caution. Collaborate with tax experts to optimize tax savings. The Autumn Budget changes demand meticulous planning. You might need to work with other professionals to effectively manage new challenges in estate administration.
CONTACT IHT as all applications are online. Thai888 Law are not financial advisors however we can write you Last Will Testament to reflect your wishes. [email protected]
