Please check dates of change carefully. There is so much that we are going to deal with personal tax first and then business tax.
Business Tax
Corporate Tax Roadmap
The government has published a Corporate Tax Roadmap. The roadmap includes a commitment to cap the Corporation Tax rate at 25%; maintain the small profits rate and marginal relief at current rates and thresholds; and maintain key features as such as Full Expensing, the Annual Investment Allowance, R&D relief rates,
and the Patent Box.
The roadmap also outlines areas for further exploration including a new process for advanced assurance for major projects and simplifying and improving tax administration.
VAT on private school fees
From 1 January 2025, to secure additional funding to help deliver the government’s commitments relating to education and young people, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20%. This will also apply to boarding services closely connected to education and vocational training provided by private schools.
The government has published a response at VAT on Private School Fees & Removing the Charitable Rates Relief for Private Schools to its technical consultation on this policy. To protect pupils with special educational needs that can only be met in a private school, local authorities and devolved governments that fund these places will be compensated for the VAT they are charged on those pupils’ fees.
Making Tax Digital for Income Tax Self-Assessment
The government is committed to delivering Making Tax Digital (MTD) for Income Tax Self-Assessment. The government will expand the rollout
of MTD to those with incomes over £20,000 by the end of this Parliament, and will set out the precise timing for this at a future fiscal event.
Energy Profits Levy
From 1 November 2024, the Energy Profits Levy (EPL) rate will rise by 3 percentage points to 38%, the investment allowance will be abolished, and the rate of the decarbonisation allowance will be set at 66% so its cash value is maintained. To provide certainty and to support a stable energy transition, the government will make no additional changes to tax relief available within EPL.
The levy will end on 31 March 2030. The government will legislate for these measures in the Finance Bill 2024 to 2025. To support long-term stability and predictability in the oil and gas fiscal regime, the government will publish a consultation in early 2025 on how the taxation of oil and gas profits will respond to price shocks after the EPL ends.
The government will also continue to have regular engagement with the sector to understand the evolving context of oil and gas investment, supported by bi-annual fiscal forums.