Pre-Budget Submission
In a letter to Treasury, the Committee highlighted a range of tax policy and administration recommendations and concerns ahead of the Budget and next Spending Review. The areas covered were as follows:
• Business taxation and the need for stability, certainty, and supports for investment,
• How tax policy can support the transition to net zero,
• The fuel duty dilemma,
• The Trader Support Service and the customs intermediaries’ market in Northern Ireland,
• Changes to capital taxes,
• Investment in HMRC,
• Making Tax Digital for income tax,
• Tax simplification and policy making, and
• A lower rate of corporation tax for Northern Ireland.
You can read the submission in the tax representations section of our website.
2024 UK Autumn Budget
The Budget featured £40 billion in tax rises in order to repair public finances because of £22 billion of “in-year pressures”. It also aimed to establish a robust foundation for economic growth.
The rate of employer national insurance contributions (NICs) will increase from 13.8 percent to 15 percent from 6 April 2025 and the secondary threshold (the level at which an employer is liable to pay employer NICs) will reduce to £5,000 (previously £9,100). Some smaller employers will be protected as a result of changes from the same date to the employer NICs employment allowance which will increase from £5,000 to £10,500. A range of changes to inheritance tax (IHT) featured with the scope of agricultural property relief (APR) and business property relief (BPR) to be limited from 6 April 2026 to 100% on the first £1 million and 50 percent relief on the excess. Unused pension funds/ death benefits payable from a pension into a person’s estate will be within the scope of IHT from the same date.
The rates of capital gains tax (CGT) were increased for disposals made on or after 30 October 2024;the lower rate of CGT increased from 10 percent to 18 percent, whilst the higher rate increased from 20 percent to 24 percent.
Making Tax Digital (MTD)
MTD for income tax will be extended to unincorporated businesses/landlords with turnover over £20,000 by the end of the current Parliament the precise timing for which will be set out at a future fiscal event. Chartered Accountants Ireland has already challenged the Government on this planned reduction in the MTD exemption limit.
Corporation Tax
The publication of the previously announced Corporate Tax Roadmap should provide businesses with more certainty and confirmed that no changes will be made to the rates of corporation tax nor R&D tax relief.
Stamp Duty Land Tax (SDLT)
The SDLT surcharge on acquisition of an additional dwelling increased from 3 percent to 5 percent from 31 October 2024. Those who exchanged contracts prior to 31 October 2024 are not affected by these rate increases.
Tax Agents
A response was published to the consultation on potential regulation of tax advisers which the Institute responded to earlier this year. The consultation response sets out that from April 2026 the Government will mandate registration of tax advisers who interact with HMRC on behalf of clients. However, the consultation response is silent on any new measures to regulate the UK tax agent market although a further consultation will be published on “tackling rogue tax advisers”.
Post Budget Meeting with HMRC
Earlier this month the Committee met with HMRC to discuss the Budget. We expressed concern and shared our views on the impact of a range of changes including increased employment costs as a result of the national minimum wage and employer NICs changes.
We also highlighted the damaging impact that the 2026 changes to APR and BPR will have, particularly for Northern Ireland family-owned businesses and farms. We recommended to HMRC that the Government consult more widely on this, highlighted the need to ensure any anti-forestalling legislation is fair and the changes do not impact retrospectively
And finally, as always, the Institute and the Northern Ireland Tax Committee welcomes your feedback on UK tax matters by email to tax@charteredaccountants.ie