Press release
30 October 2024
Commenting on inheritance and capital gains tax measures announced today, Rachel McEleney, associate tax director at Deloitte said:
“The removal of the inheritance tax exemption appears to result in a double hit on death benefits that do not qualify for an income tax exemption, such as those where people die over 75 years old. Assuming the whole fund is subject to 40% inheritance tax, and the beneficiary pays income tax at 45% on the remainder, this appears to give rise to an effective 67% tax rate on taxable pension death benefits.
“The Chancellor also announced reforms to business property relief and agricultural property relief. Relief on the excess over £1 million will be limited to 50%, leaving the remaining 50% subject to inheritance tax. Shares quoted on the Alternative Investment Market (AIM) will only qualify for 50% relief instead of 100%, resulting in an effective inheritance tax rate of 20%.
Capital gains tax
“Investors’ relief, which currently allows up to £10 million of certain gains to be taxed at 10%, will also be reformed. The lifetime limit will be reduced to £1 million for disposals made on or after 30 October 2024. The tax rate will increase to 14% from 6 April 2025 and to 18% from 6 April 2026. This could increase the tax on a £10 million gain from £1 million to £2.34m.”
@DeloitteUK for live comment
Deloitte spokespeople
Deloitte has a range of spokespeople available to comment on today’s Autumn Budget. They can be reached on 0207 303 5054 or one of the following numbers:
• Ian Stewart – chief economist (07774 337 581)
• Amanda Tickel – head of tax policy (07825011798 / 07768178264)
• Rachel McEleney – personal tax (07825011798)
• Mark Outtrim – business rates (07774 337581)
• Ed Roddis – public sector (07785 682226)
• Toby Price – stamp duty (07990 434703)
• Leila Jiwnani – hospitality and leisure (07824 895798)
• James Clare – carried interest (07586 511104)
• Anthony Massey – energy tax (07774 337581)
About Deloitte
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.
Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.
The information contained in this press release is correct at the time of going to press.
For more information, please visit www.deloitte.co.uk.