Upcoming Changes In Tax Legislation
As we begin 2025, and approach the end of the 2024/2025 tax year on the 5th April 2025, there are several upcoming tax changes that may affect you and your business. As your trusted accountants Middlesbrough, we will discuss some of the key takeaways that are likely to affect you.
Capital Gains Tax Increase
Capital gains tax is tax charged on the profits made from selling assets that have increased in value.
As per the Autumn Budget, the capital gains tax would rise from 10% to 18% for basic rate taxpayers, and from 20% to 24% for higher and additional rate taxpayers. It is crucial to keep documentation and any records as a capital loss can be offset by capital gains of the same tax year.
Minimum Wage
The national minimum wage and national living wage will both increase from the 1st April 2025, the new rates are as follows:
Under 18s – £7.55 (From £6.40)
18 – 20 – £10.00 (From £8.60)
Aged 21 + – £12.21 (From £11.44)
Corporation Tax
Corporation Tax remains unchanged, meaning that from April 2025, corporation tax will remain at 25% for companies with profit over £250,000. The 19% small profits rate will be payable by companies with profits of £50,000 or less. Companies with profits that are between £50,001 and £250,000 will pay tax at the main rate reduced by a marginal relief.
Road Tax
From April 2025, electric vehicle owners will no longer by exempt from road tax. Currently, electric vehicles are exempt from road, but from April 2025, EV owners will pay a first year rate of £10. Furthermore, electric vehicles priced over £40,000 will face the expensive car supplement, which is £410 currently.
Contact Us Today
Looking for accountants Middlesbrough? We have you more than covered. Our team understand that all of these upcoming tax legislation changes be difficult to navigate, which is why we are always on hand to answer any questions you may have.
Give our team of accountants Middlesbrough a call today on 01325 488788, or alternatively, fill in our contact form here, and we will be in touch with you as soon as possible.