UK General Election update

Following the General Election, Labour now have a majority government with over 400 seats. There has been much speculation in recent months, since the spring Budget back in March, regarding potential changes in taxation.

Rachel Reeves, the new chancellor, is expected to announce the date of her first Budget by the end of July. Given the preparation time required and notice for the Office of Budget Responsibility (OBR) it is likely that the Budget would not be before October 2024.

Labour, so far, have ruled out Income Tax, National Insurance and VAT increases, however are expected to keep income tax thresholds frozen until April 2028. There has been no commitment to keeping capital gains taxes at the current level.

At the last Budget, the Conservatives outlined their proposals for Non-Dom and Inheritance Tax Reform – please see the following links for our coverage on this and the Labour comments:

UK Government Non-Dom Reform

UK Non-Dom Reform – Election Update

There are other updates expected which will impact: Corporation Taxes (Labour has promised to cap this at 25%), Stamp Duty Land Tax (SDLT) for non-UK residents, along with a tightening of the tax rules for carried interest arrangements and potentially removing the VAT exemption for private school fees.

We will be closely monitoring any developments and will provide updates accordingly.

Please reach out to your usual Frontier contact if you would like to discuss how the above may impact your affairs.