Budget Breakfast Review Event Highlights

Key Insights from the 2024 Autumn Budget

On Tuesday, 5th November 2024, DonnellyBentley and Pierce Accountants hosted their much-anticipated Budget Breakfast Review at Club McGinley, Bolton Stadium Hotel. The morning kicked off with a relaxed buffet breakfast, giving attendees a chance to chat and connect. After breakfast, everyone settled in for a series of insightful presentations where industry experts unpacked the latest Budget announcements and explored what these mean for businesses, families, and investors.

Andrew Newton opened the seminar with a warm welcome, setting the tone for a morning of essential insights. With four main speakers, the session offered practical advice across a range of topics, from economic forecasts and tax changes to strategies for managing personal and business finances.

UK Economic Landscape with Alex Brandreth, Lunar Investments

The seminar began with Alex Brandreth’s overview of the UK economy. Alex discussed the ongoing impact of inflation on both business and household budgets, noting how the Bank of England’s recent rate hikes aim to keep rising costs under control – though this also means higher borrowing and investment costs. He highlighted some important global trends, such as the upcoming U.S. election, which may bring about shifts in UK markets.

Alex’s presentation provided attendees with data on economic growth and an understanding of how these external factors could affect various investment options. This set the stage perfectly for the following speakers to dive into specific budget impacts.

Impact on Businesses: Employer National Insurance and Capital Gains Tax with Dominic Ball, Tax Director

Dominic Ball, Pierce Accountants’ Tax Director, focused on key changes for businesses, particularly around costs. A major point of discussion was the upcoming rise in Employer’s National Insurance Contributions (NICs), which will jump from 13.8% to 15%. The employer threshold will also drop, meaning increased payroll expenses for employers. Dominic suggested strategies to manage these costs, such as salary sacrifice schemes and enhanced pension contributions, which can help to ease the financial impact.

He also covered significant changes to Capital Gains Tax (CGT), where rates on the sale of shares and non-residential property will go up to 18% and 24% from April 2025. Business owners were encouraged to start reviewing their assets now to plan effectively for these upcoming changes.

Pensions and Legacy Planning: Changes to Tax-Free Cash and Inheritance Tax with Courage Ruwanza

Courage Ruwanza then took the stage to discuss the upcoming pension changes and their implications. Attendees heard about potential reductions to the tax-free cash allowance and changes in tax relief on contributions. Particularly significant for anyone planning to pass on a pension, the new rules from 2027 mean that inheritance tax (IHT) will apply to pensions when the holder dies, especially for those over 75.

Courage suggested alternatives, such as Family Investment Companies, to help transfer wealth more efficiently across generations. He also recommended considering IHT insurance as a safeguard so that beneficiaries aren’t surprised by unexpected tax liabilities down the road.

Family-Owned Businesses and Estate Planning with Nadeem Hussain

Next, Nadeem Hussain focused on inheritance tax (IHT) changes, which are especially relevant for family-owned businesses. Starting in April 2026, Business Property Relief (BPR) and Agricultural Property Relief (APR) will be capped at £1 million combined. Anything beyond this will only qualify for a 50% relief rate, so careful estate planning will be essential for business owners aiming to protect their wealth for future generations.

Nadeem discussed options for structuring estates under these new rules, including lifetime gifting and using trusts to safeguard family wealth. Families were encouraged to consider transferring shares or assets before the new thresholds come into effect to make the most of available tax reliefs.

Employee Ownership Trusts and Succession Planning

As more business owners consider handing over the reins, Employee Ownership Trusts (EOTs) were highlighted as an effective route for succession planning. Under the new rules, EOTs must be UK-based, and trustees will need to ensure purchase prices are fair market value. This structure allows business owners to transfer shares tax-free while empowering employees through ownership – a great option for anyone considering a business transition.

Additional Updates: SDLT, Residency Rules, and Holiday Lettings

To round off, the speakers shared additional updates on:

Stamp Duty Land Tax (SDLT), with the additional rate increasing to 5%, which will affect property investments.
Residency-Based Taxation for Non-Domiciled Individuals, coming in April 2025, where tax status will be determined by residency rather than domicile.
Furnished Holiday Lettings, with new rules starting in April 2025, impacting tax planning for those with properties in the holiday rental market.

Closing Remarks and Networking

Andrew Newton wrapped up the seminar, summarising the key points and encouraging everyone to consider the next steps in light of these Budget changes. After the presentations, attendees had the chance to chat with the DonnellyBentley team for tailored advice on specific challenges or concerns.

The morning was packed with valuable information, offering business leaders, investors, and families practical strategies to tackle the changes ahead. DonnellyBentley would like to thank everyone who joined and made the event such a success.