The much-anticipated first Budget of our new Chancellor of the Exchequer John Healey was presented yesterday, framed as a plan to provide “breathing space” for UK households and businesses in an uncertain global climate.
Speculation around substantial changes to capital gains tax and inheritance tax did not materialise, and while some may be relieved there was bad news for landlords with an increase in income tax rates on property and savings income, which will rise by an additional two percentage points from April 2027. More welcome news was the retention of the £20,000 cash ISA allowance, although the freezing of income tax thresholds and the personal allowance until 5 April 2031 means that more and more earners will be dragged into new bands as wage inflation increases.
There was also good news for entrepreneurs, with a proposed relief of applying a 10% rate to qualifying disposals of shares, subject to a lifetime limit of £10 million of gains per individual. The government will now launch a consultation.
Our summary sets out details of the changes affecting private clients.
