Budget 2024 Update

On 30th October the Chancellor, Rachel Reeves, delivered the first budget of the new Labour government. This budget was subject to a significant amount of anticipation and speculation, partly due to the much discussed “black hole” in public finances. Now the dust has settled, here is a summary of the main changes that will affect personal finances and the investment landscape.

Capital Gains Tax
The rate of Capital Gains Tax (CGT) on funds and shares has increased immediately from 10% to 18% for basic rate taxpayers and from 20% to 24% for higher and additional rate taxpayers.

Whilst CGT rates remain below the equivalent rates of income tax, the increase is unwelcome, particularly when coupled with reductions in the CGT annual exemptions from £12,300 in 2022, to just £3,000 now. It of course highlights the need to maximise the use of ISA and pension allowances where available, and in some cases hold assets across a range of tax wrappers.

A positive CGT outcome is….