In this article, we present the most significant tax changes for the year 2024/25:

• From April 6, 2024, the main rate for National Insurance Class 4 contributions for self-employed individuals will be reduced from 9% to 6%. Combined with the abolition of Class 2 contributions, this means an average saving of £650 per year for a self-employed individual earning around £28,000 annually.
• The Chancellor will also reduce the employee’s National Insurance contribution by 2%, from 10% to 8%, starting from the new tax year 24/25.
• In a move to support the housing market, the government has lowered the Capital Gains Tax on the sale of second homes and additional residential properties from 28% to 24%. The lower rate will remain at 18% for gains falling within the basic rate band for individuals.
• From April 1, 2024, the current VAT threshold has been raised from £85,000 to £90,000 (calculated over the last 12 months).
• Additionally, the Chancellor will increase the threshold for the child benefit charge for high-income individuals from £50,000 to £60,000.
• From April 6, 2025, there will be a new tax system for NOM-DON individuals based on residency, where individuals will not pay tax in the UK on any foreign income and gains arising in their first four years of tax residence, provided they have not been taxpayers for the last 10 years.