What UK Budget Changes Might Affect You?

Minimum Wage Increase

From April 2025, the minimum wage for workers over 21 years old will rise to £12.21 per hour, while for those under 20, it will be £10 per hour.

However, the tax-free personal allowance (£12,570) will remain unchanged until 2028.

(This means that as wages increase, we will pay more tax.)

 

Buying Property

The Stamp Duty threshold for property purchases will decrease from £250,000 to £125,000, and the additional tax on second homes will increase from 3% to 5%.

(This means the amount of tax when buying a property will increase.)

 

Selling Property/Shares

Capital Gains Tax will increase from 10% to 18% (for higher-rate taxpayers, from 20% to 24%). This applies to gains from the sale of assets such as shares or second homes.

 

Abolition of Non-Domiciled Tax Status (Non-Dom)

From 6 April 2025, foreigners living in the UK but holding tax residency abroad will no longer be able to avoid paying UK tax on their overseas income and capital gains.

 

Pensions & Social Benefits

State pensions will increase by 4.1% next year. At the same time, the maximum earnings threshold for those receiving in-work benefits will increase to £195 per week.

 

Increase in Employer NI Contributions

From April 2025, businesses will be required to pay 15% National Insurance (NI) on salaries above £5,000(previously 13.8% on salaries above £9,100), increasing employer costs.

(This could lead to higher prices for goods and services.)