With the announcement of the Autumn Budget, several tax increases have caused widespread confusion. For many immigrants with global income and assets, the abolition of the non-domicile (‘non-dom’) tax regime and the introduction of a residence-based tax system mean that individuals will be subject to ‘global taxation’ on any income or gains earned outside the UK. What does the abolition of the non-domicile tax regime mean for immigrants? How will the new system work, and how should we prepare for it? Current rules for non-domicile For immigrants living in the UK for at least 183 days, if their permanent home (or family base) is abroad, they may qualify as non-domiciled residents (‘non-doms’). Under the current system, they can avoid paying tax on overseas income for up to 15 years. Non-doms currently have two taxation options: Global Taxation: Pay UK tax on worldwide income and capital gains. Remittance Basis: Pay UK tax only on foreign income or gains brought into the UK, while overseas earnings not remitted to the UK remain tax-free. Those opting for the remittance basis lose UK income and capital gains tax allowances and may incur annual charges: £30,000 if they’ve been UK residents for 7 of the last 9 tax years £60,000 if they’ve been UK residents for 12 of the last 14 tax years For wealthy individuals domiciled in low-tax countries, this system offers significant and completely legal savings. In 2022-23, around 74,000 individuals claimed non-dom status. A high-profile example is Akshata Murty, wife of former UK Prime Minister Rishi Sunak, who faced controversy for her tax arrangements. Following public backlash, she agreed to pay UK tax on her global income. Changes to the rules According to the Autumn Budget, the non-dom tax regime will be abolished on 6 April 2025 and replaced with a new residence-based system. While details are sparse, it is estimated that these measures will generate an additional £12.7 billion for the UK over five years.  The new plan may align with proposals from a previous Conservative government budget, offering insights for financial planning. Proposed alternative: the 4-year Foreign Income and Gains (FIG) regime Under this regime: Immigrants will receive 100% tax relief on foreign income and gains for their first 4 tax years in the UK. Overseas funds, including distributions from non-resident trusts, can be brought into the UK tax-free during this period. UK-sourced income and capital gains will remain taxable. After 4 years, global income and gains remitted to the UK will be taxable. Eligible individuals who become UK tax residents before 5 April 2025, and meet certain criteria, can still apply for FIG during the remainder of the 4-year period. Transitional Rules For existing non-doms or those using the remittance basis, transitional measures include: Temporary Repatriation Facility During the 2025/2026 and 2026/2027 tax years, previously unremitted overseas income can be brought into the UK at a reduced 12% tax rate. From the 2027/2028 tax year onward, normal tax rates will apply. Capital Gains Tax Base Reset Non-doms can use the asset value as of 5 April 2017, as the tax base for disposing of overseas assets after 6 April 2025. Inheritance Tax for Long-Term Residents Individuals who have lived in the UK for at least 10 of the past 20 tax years will face inheritance tax on non-UK assets for up to 10 years after leaving the UK. Overseas Workday Relief Adjustments For individuals claiming Overseas Workday Relief: The relief period will extend to 4 years to align with the FIG regime. Relief will apply only to overseas income not remitted to the UK. From 6 April 2025, limits will be introduced: Relief will be capped at the lower of £300,000 or 30% of total employment income. No income tax relief can be claimed for overseas income earned on or after this date. Employers will no longer need HMRC approval to calculate PAYE deductions based on UK workdays. Potential impacts and advice While the government expects these changes to boost tax revenue and fairness, critics warn that wealthy non-doms might leave the UK, undermining revenue projections. The abolition of non-dom benefits may also affect: High-end property markets Luxury consumption industries Trust structures for wealth planning For migrants or those considering moving to the UK, staying informed and preparing before April 2025 is essential to optimise tax strategies and secure long-term wealth stability. We recommend that you consult with a professional financial advisor to navigate these changes effectively. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or   WhatsApp .

Despite the Bank of England lowering its base rate, savings account returns still exceed inflation. However, bond market forecasts suggest the Bank of England might further reduce interest rates in 2025, potentially dropping the base rate from 4.75% to around 4% by the end of next year. If true, savings rates could decrease even further. To make the most of your savings before potential rate cuts, now is the time to act. Whether your goal is short-term or long-term savings, this guide will help you select the best savings account for maximum returns. Types of savings accounts in the UK Nearly all banks in the UK offer savings accounts, distinct from current accounts used for daily expenses. Here are the common types: Regular Savings AccountsSave a fixed amount monthly for a set term (e.g. 12 months) and earn interest. These accounts help build a saving habit and often offer attractive rates. However, they may have limits on deposits or restrictions on withdrawals. Easy Access Savings AccountsSimilar to current accounts, these allow quick access to funds, making them ideal for short-term goals. However, interest rates are variable and may fluctuate. Fixed-Rate BondsLock your funds for a set term and earn a fixed interest rate. These provide certainty on returns but often impose penalties for early withdrawals. Notice Savings AccountsRequire advance notice for withdrawals, offering higher rates than easy access accounts in return for reduced liquidity. High-Interest Savings AccountsOffer competitive rates but often come with conditions, such as a high minimum deposit. Children’s Savings AccountsDesigned for those under 18, these accounts can be a valuable tool for teaching financial skills. Cash ISAs (Individual Savings Accounts)Tax-free savings with an annual allowance of £20,000. However, their returns may be lower compared to other account types. Lifetime ISAs (LISAs)Tailored for first-time homebuyers or retirement savers, LISAs include a government bonus and an annual limit of £4,000. Savings rates and bank options For savings to grow in real terms, interest earned must exceed inflation. Since October 2023, UK savings rates have outpaced inflation, marking a good period for savers. However, rates have been gradually declining since mid-2024 as inflation rises. According to the UK Office for National Statistics, October’s CPI inflation rate rose to 2.3% (up from 1.7% in September) and is expected to climb further, potentially reaching 2.75% by late 2025. Concurrently, savings rates, influenced by the Bank of England’s base rate, are projected to decrease. Still, many banks offer savings rates above inflation. Acting quickly is essential to secure these favourable rates. Recent recommendations from MoneySavingExpert (at the time of writing) include: Best Easy Access Accounts Plum Cash ISA: 5.18% Moneybox Cash ISA: 5.17% Atom Bank: 4.85% Best Notice Accounts Recognise Bank: 95-day notice, 4.95% Best Fixed-Term Accounts Oxbury Bank: 3-month term, 4.8% Habib Bank Zurich: 1-year term, 4.8% Secure Trust Bank: 2-year term, 4.61% DF Capital: 3-year term, 4.61% Choosing a savings account When opening a new savings account, consider the following factors: Interest RatesA good rate is key to higher returns. Check for promotional rates, their duration, and any conditions like minimum deposits. AccessibilityEvaluate your short-term cash needs. Easy access accounts are ideal for emergencies, while locking funds for longer periods may yield better rates. Terms and ConditionsWatch for restrictions like minimum deposits, mandatory monthly contributions, or withdrawal penalties. Tax ImplicationsMost UK savers don’t pay tax on interest due to the Personal Savings Allowance. However, if your interest exceeds this threshold, you may owe taxes. ProtectionThe Financial Services Compensation Scheme (FSCS) protects deposits up to £85,000 per account. Consider diversifying funds across accounts if your savings exceed this limit. Is savings interest tax-free? Most people can earn some interest tax-free within the following allowances: Personal AllowanceUnused personal allowance (typically £12,570) can be applied to savings interest. Starting Rate for SavingsUp to £5,000 in tax-free interest is available, depending on your income. For every £1 above £17,570 in total income, the starting rate is reduced by £1. Example: Salary: £16,000 Savings interest: £200 Taxable salary after personal allowance: £3,430 Remaining starting rate: £1,570 (£5,000 – £3,430) Result: No tax on £200 interest. Personal Savings AllowanceTax-free allowances depend on your tax band: Basic rate: £1,000 Higher rate: £500 Additional rate: £0 Interest exceeding these thresholds is taxed at your income tax rate. By carefully choosing the right savings account and acting promptly, you can make the most of your money in 2025, even amid changing economic conditions. All information provided is up to date at the time of writing.  For up-to-date savings account details, we recommend checking directly with the financial institution in question or on MoneySavingExpert for up-to-date information. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or   WhatsApp .

In the UK, most people have heard of inheritance tax. If children inherit assets worth more than £325,000 from their parents, HMRC will levy this tax. Therefore, many people arrange their assets for their children and family members during their lifetime. For example, parents may transfer assets to their children early to avoid the high inheritance tax through the seven-year rule. However, you may not be aware that your situation could also involve a tax called Pre-Owned Asset Tax (POAT), which sometimes can be quite substantial. What is Pre-Owned Asset Tax (POAT)? POAT is a tax on pre-owned assets. It applies to assets such as property, land, personal valuables, cash, stocks, insurance products, and other intangible assets that people can freely gift during their lifetime. If, after gifting these assets, you continue to directly or indirectly benefit from them, you may be subject to POAT and required to pay income tax. According to POAT rules, any income you derive from the gifted assets is considered your taxable income, and the tax value is based on the annual benefit derived from these assets. Typically, POAT is calculated based on the ‘enjoyment value’ of the asset, often equivalent to the market rent paid when the asset is leased on the open market. This value is then taxed at your normal income tax rate. In general, POAT doesn’t take into account the asset’s income, but uses a fixed method to calculate the tax liability. When are you required to pay POAT? POAT applies to a wide range of situations. It includes not only gifting assets to family members but also placing them in trusts or selling them below their market value. The purpose of POAT is to prevent people from avoiding inheritance tax by gifting assets but still benefiting from them. If HMRC can’t levy inheritance tax, they will find another way, such as through income tax. In the context of inheritance tax, if parents gift assets to children and survive for seven years, the gifted assets are ignored when calculating whether inheritance tax is due. However, if they continue to benefit from those assets in some way, they must pay income tax according to POAT rules. Common examples: On 30 September 2012, Mr W and his wife sold their property and gave £450,000 (the proceeds from the sale) to their son to purchase a larger home. Later, when Mr W and his wife became elderly and frail, they moved into their son’s property rent-free. HMRC considered this as a POAT situation, and they were required to pay the tax. On 24 December 2013, Mr W gave his son £300,000, which the son used to buy a rental property. Later, the property was sold for £600,000, and in 2017, Mr W’s son used the proceeds to buy another property, allowing Mr W to live there. HMRC considered this an indirect benefit, and POAT was applied. GWR and POAT: The Difference You might have heard of GWR (Gift with Reservation of Benefit) while reading about inheritance tax rules. Both GWR and POAT are anti-avoidance measures aimed at preventing people from avoiding inheritance tax. The key difference is that GWR still requires inheritance tax to be paid, while POAT requires income tax. For example, if parents transfer ownership of a property to their children but continue to live in it, this is considered a gift with reservation of benefit (GWR). In this case, the property value will still be included in the estate for inheritance tax purposes when the parents pass away. Taxpayers can also try to ‘benefit’ in other ways, such as selling their house and giving most of the money to their children, who then buy another property for the parents to live in. In such cases, POAT may apply instead of GWR. How can you avoid or reduce POAT? While POAT rules are strict, there are ways to reduce its impact: Gift assets to a spouse: Transfers between spouses typically don’t fall under POAT rules. Pay market rent: If you gift money to children who buy property for you to live in, you can avoid POAT by paying a fixed rent. Fair trade disposal: If you dispose of assets to unrelated parties at fair market value or to related parties under fair terms, POAT may not apply. Choose to pay inheritance tax: If the asset is included in your estate for inheritance tax purposes, POAT may be exempt. £5,000 threshold: If the “appropriate rental value” in a given tax year is less than £5,000, POAT is not applied. Certain assets may be exempt: Assets used for business purposes or with low value may be exempt from POAT. In summary, as always, it’s important to consult a tax advisor to ensure you’re not violating any tax rules you might not be aware of. What should you do? If you find that your situation involves POAT, you must report these assets to HMRC every year. You need to inform them of the assets you continue to benefit from, their value, and the amount of tax you owe. Make sure you handle these matters correctly, as failing to do so can result in penalties. Many people don’t realise this tax rule until they deal with the inheritance left by their parents and discover they are liable for POAT. HMRC always has ways to collect taxes. They might notify the executor of your will about the tax liability when they are handling inheritance tax. If you face POAT issues and cannot afford or do not want to pay the tax, HMRC may offer solutions, such as opting to pay inheritance tax under the GWR rules instead. The impact of taxes will depend on various factors, and expert advice is essential. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or   WhatsApp .

In recent years, many countries, including France, Canada, Japan, and the United States, have adjusted their retirement ages, moving toward delayed retirement. This change is mainly in response to population aging, pension system pressures, and labour market changes. By extending working years, the goal is to better adapt individuals, businesses, and governments to future economic and social demands while ensuring the long-term sustainability of pension systems. As for the UK, it started its gradual delay in retirement by 2010, progressively raising the State Pension Age and delaying the time when individuals can receive state pensions. What is the current retirement age? Since October 2020, the statutory retirement age in the UK for both men and women has been 66, at which point they can start receiving state pensions. However, this age may be increased. According to an independent review by the previous Conservative government, it is recommended to raise the state pension age from 66 to 67 between 2026 and 2028. Recently, Labour Chancellor Rachel Reeves suggested raising the state pension age to 68 to save £6.1 billion for the Treasury, freeing up more funds for policing, education, and other areas. How does the pension system work? There are three main types of pension in the UK: Basic State Pension Workplace Pension Personal Pension Basic State Pension This is the regular pension provided by the government once an individual reaches the state pension age. The amount varies based on National Insurance Contributions (NICs), and taxes must be paid on it. For those reaching state pension age after April 6, 2016, the New State Pension applies. Eligibility: A minimum of 10 years of NICs is required. These contributions can come from paid work or from credits earned through certain benefits (e.g. for parenting or caregiving). Amount for 2024/2025: The full New State Pension is £221.20 per week. This amount is adjusted annually based on the ‘Triple Lock’ policy, which increases it by the highest of wage growth, inflation, or 2.5%. Those who don’t meet the minimum income threshold or care for disabled individuals may be eligible for Pension Credit. From April 2024, Pension Credit will be £218.15 per week (single) and £332.95 per week (for couples). Those eligible for Pension Credit may also qualify for other financial support, such as housing benefit, council tax reductions, or help with heating costs through the Winter Fuel Payment and Warm Home Discount programs. Workplace Pension A workplace pension, also known as an employer pension, is legally required for employers to set up and contribute to for their employees. Under the auto-enrolment system, if an employee is over 22 years old, below the state pension age, and earns more than £10,000 per year, their employer must contribute to a pension for them. Employers and employees both contribute to this pension. Typically, employees contribute 5% of their pre-tax salary, while employers contribute at least 3%. The total minimum contribution is 8%, with tax relief applied to the employee’s contribution. Though auto-enrolment is mandatory, employees can choose to opt out. However, by opting out, they miss out on the employer’s contribution and tax benefits. Employees who opt out can re-join at any time. The age for accessing workplace pensions is the same as the state pension (and may be increased). Pay-out options include lump-sum withdrawals (with 25% tax-free) or purchasing an annuity for a steady income after retirement. Personal Pension Personal pensions run alongside state and workplace pensions and provide additional retirement income security. They are often used by the self-employed, those without a workplace pension, or those wanting to increase their retirement savings. Personal pensions can be set up with financial institutions, insurance companies, or pension providers and come with tax benefits. There are various types of personal pensions, such as: Stakeholder Pensions: Allow flexible contributions with funds invested in stocks, bonds, or other financial assets to grow over time. There are government-imposed fee caps. Self-Invested Personal Pensions (SIPP): Provides individuals with control over their investment choices within tax-advantaged savings. All types of pensions are subject to income tax upon withdrawal, with tax-free allowances of up to 25% of the total savings. Tax on the remaining 75% depends on the pensio n’s value and the individual’s total income. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or   WhatsApp .

If you’re looking to buy older apartments in the UK but are hesitant due to concerns over leasehold terms potentially affecting property value, here’s some good news for property buyers. On 21 November the UK Minister for Housing and Planning, Matthew Pennycook, announced that the government plans to implement the Leasehold and Freehold Reform Act 2024, starting in January 2025. The first change will eliminate the ‘two-year rule’ for extending lease terms. This is welcome news for first-time buyers and investors interested in UK apartments. Let’s delve into the details. What is Leasehold Property? In the UK, many apartments are sold under a leasehold arrangement—a form of ownership where you have the right to occupy and use the property for a set lease period. Newly built apartments typically come with long leases, ranging from 125 years to 999 years. However, such properties often have a premium price tag. For first-time buyers, second-hand apartments may be a more affordable option. Similarly, investors might find better returns in lower-priced older apartments. However, lease terms are diminishing assets. If you’re considering buying a second-hand apartment, you may encounter properties with short remaining lease terms, sometimes under 99 years. When the lease term drops below 80 years, the property’s value can significantly decrease. Additionally, leases under 85 years can make refinancing difficult, as many lenders require a lease to have at least 85 years remaining . Short leases may also deter potential buyers. In such cases, extending the lease is often the solution. What is a Lease Extension? A lease extension involves increasing the remaining lease term on a property. UK law allows eligible leaseholders to extend their leases by a statutory period while paying a premium to the freeholder (landlord). Current Eligibility Criteria for Statutory Lease Extensions: The property must be a flat. The original lease term must have been longer than 21 years. For shared ownership leases, 100% ownership must have been achieved. The leaseholder must have owned the property for at least two years. Key Terms of Statutory Lease Extensions: An additional 90 years is added to the existing lease term. Ground rent is reduced to a peppercorn (typically £0 or £1). Minor modifications or corrections may be included. What’s the New Policy? Starting in January 2025, the UK government will remove the two-year ownership requirement for lease extensions or purchasing the freehold. This means leaseholders can extend their leases or buy the freehold immediately after purchasing the property. How to Extend a Lease The statutory lease extension process involves several steps: Assess Eligibility: Determine whether the leaseholder qualifies for an extension. Obtain a Premium Valuation: A surveyor estimates the premium (price) for the lease extension or freehold purchase. Serve Notice to the Freeholder: The leaseholder sends a formal notice outlining the proposed extension terms and allows the freeholder at least two months to respond. Freeholder’s Response Options: Accept the extension and proposed terms. Accept the extension but dispute the terms. Dispute the right to extend the lease. Negotiate Terms: Resolve any disagreements over the terms. Document the Agreement: Record the agreed terms in a formal lease extension document. Complete and Register: Finalize the lease extension and register it with the Land Registry. If terms cannot be agreed upon within six months, either party can apply to a tribunal for resolution. Costs of Lease Extensions Leaseholders are responsible for several costs during the process, including: The premium for extending the lease. Stamp Duty Land Tax (SDLT) if the premium exceeds £40,000. The freeholder’s legal and surveyor fees. The leaseholder’s own legal and surveyor fees. Land Registry fees. Should You Extend Your Lease? Extending your lease can increase property value, enhance security, and make the property more attractive to future buyers. If your lease has less than 80 years remaining, extending it is almost always advisable. Government reforms may also reduce extension costs or simplify the process further in 2025. However, waiting could risk potential cost increases, so consider your financial situation and consult professionals before deciding. Tax Considerations Lease extensions may involve tax implications, including: Tax on the freeholder’s premium i ncome. SDLT on the leaseholder’s premium (if over £40,000). Capital Gains Tax (CGT) on leaseholder profits (for non-primary residences). Potential income tax implications if the freeholder is a company. Conclusion This reform is a significant win for leaseholders, granting more flexibility to extend leases or purchase freeholds without the two-year waiting period. However, tax and cost considerations remain complex. If you have questions, consult a tax expert for guidance. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact   TBA Group   via   email   or  WhatsApp .

Multiple measures from the Labour Party’s Autumn Budget are set to take effect in 2025. From VAT on children’s education to council tax and inheritance tax, some UK families may see their bills increase by thousands of pounds this year. So, which taxes will rise in 2025, and how will they impact your financial plans? Council Tax Increases Regardless of income level, anyone living in the UK must pay council tax, which will rise starting April 2025. The government has confirmed the council tax cap will remain, allowing bills in England to increase by up to 5%. For an average Band D property in England, with a current council tax bill of £2,171, this means an additional £109 per month from April 2025. End of Stamp Duty Holiday The additional stamp duty relief for first-time homebuyers in England and Northern Ireland will end on March 31, 2025. Starting 1 April, the threshold for first-time buyer stamp duty will drop from £425,000 to £300,000. Buyers of secondary or multiple properties will pay stamp duty on properties over £125,000 instead of the current £250,000. For example, purchasing a £500,000 property in England or Northern Ireland will incur a £15,000 stamp duty, an increase of £2,500 from the current rate. The Autumn Budget also raised stamp duty on buy-to-let and second homes by 2–5%, effective immediately. Increase in Capital Gains Tax (CGT) CGT, applied to profits from selling assets like investments or valuable items, saw a rate hike in the Autumn Budget. The lower rate increased from 10% to 18%, and the higher rate rose from 20% to 24%, aligning CGT with second-home sale tax rates. Note that CGT is paid on profits, not the sale price, and losses from other asset sales can offset the tax. Employer National Insurance Contributions (NICs) From 6 April 2025, employer NICs will increase from 13.8% to 15%, and the threshold for employer contributions will drop from £9,100 to £5,000. While this change directly impacts employers, critics have warned it may indirectly affect employees through reduced wage growth, fewer benefits, or limited job opportunities. Tobacco, Alcohol, and Grocery Taxes The Autumn Budget introduced higher ‘sin’ taxes on tobacco and alcohol starting 30 October 2024. Tobacco tax will rise by 2% based on the Retail Price Index (RPI), with hand-rolled tobacco increasing by 10%. For alcohol, it will increase by 2.7% from 1 February 2025, except for lower-alcohol beverages (below 8.5%), where tax rates will decrease slightly. A new grocery tax linked to net-zero legislation will also raise household costs. Retailers and manufacturers will charge based on packaging material usage, potentially adding £70 annually to the average household food bill. VAT on Private School Fees From 1 January 2025, 20% VAT will apply to private school tuition under the Labour Party’s flagship education policy. Schools have already previously informed parents of resulting fee increases. For households with an average annual income of £55,910 and one child in private school, this policy could mean an additional £7,730 in bills, making private education even more of a luxury. Additional Tax Changes 2025 Income Tax and NIC Threshold Freeze Income tax and NIC thresholds will remain frozen until 2028, meaning inflation will push more people into higher tax brackets. Starting April 2028, thresholds will rise again with inflation. For example, two adults earning £55,910 each will pay an additional £3,520 annually by 2028 due to inflation-adjusted thresholds. Inheritance Tax Freeze and New Pension Rules The inheritance tax (IHT) threshold freeze will extend to 2030. Currently: Estates exceeding £325,000 are taxed at 40% above the threshold For direct descendants inheriting property, the threshold increases to £500,000 Transfers to a surviving spouse or civil partner are exempt up to £1 million From April 2027, unused pensions will be included in IHT calculations. While this change is years away, it should be factored into estate planning. Some advice from TB Accountants With rising taxes and ongoing inflation, household expenses are set to increase significantly. We recommend proactive financial planning, prudent budgeting, and sufficient savings to address potential economic uncertainties. Adhere to tax regulations and file on time to avoid penalties. Proper financial management is key to weathering economic challenges. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email   or  WhatsApp .

Despite Knight Frank’s report indicating a slowdown in the sales of global ultra-luxury homes (properties worth over £8 million) in 2024, the previous year still witnessed record-breaking transactions and top-tier listings. Let’s see if your dream home made the list! 1st Place One Hyde Park, Knightsbridge, London SW1 Price: £175 million The most expensive property in the UK is located within the most luxurious development on the country’s priciest street. Spanning 18,000 square feet across the 10th and 11th floors, this penthouse overlooks Hyde Park. Key features: Double-height reception room Wraparound terrace Five marble-en-suite bedrooms Cocktail bar Cinema Two studies Spa Staff suite Managed by the Mandarin Oriental Hotel Group, residents can book bespoke services like maid and catering. Priced at a staggering £175 million, this property is equivalent to 654 average UK homes (as of October 2024, Zoopla reported the UK’s average house price at £267,200). 2nd Place San Juan Capistrano, Orange County, California, USA Price: $150 million (£119.7 million) Dubbed California’s priciest property project, Casa Grande is a 42-acre mixed-use estate under construction. Highlights: 38,000-square-foot mansion with ocean, mountain, and coastline views Guest and staff accommodations Barn and stables for up to 10 horses Functioning avocado farm and citrus orchard Potential tequila business opportunity 3rd Place Aspen, Colorado, USA Price: $108 million (£86.19 million) As the world’s most expensive ski resort, Aspen is no stranger to multi-million-dollar homes. However, a 22,400-square-foot mansion sold in April stunned many as it became Colorado’s first property to surpass the $100 million mark. Features: 11 bedrooms, 17 bathrooms 5-acre plot in the exclusive Red Mountain area Uninterrupted mountain views 4th Place Long Island, New York, USA Price: $88.5 million (£70.61 million) Previously listed at $150 million, this property, La Dune, became the Hamptons’ most expensive home. It was finally sold at auction in January 2024. Details: Two beachfront mansions (built in 1892 and 2001) 4-acre landscaped grounds 400 feet of beachfront Featured in Woody Allen’s 1978 film Interiors 5th Place Belgravia, London Price: £65 million This grand period townhouse, located on Grosvenor Crescent, was the most expensive home sold on Zoopla in the past 12 months. Key features: Six en-suite bedrooms Elegant reception rooms Formal dining room Chef’s kitchen Spa facilities 6th Place Domaine de Vignette, Saint Barthélemy Price: $59 million (£47.07 million) Nestled in lush hills overlooking Colombier Beach, this secluded estate consists of nine bungalows and tropical gardens. Unique aspects: Central pool deck, lounge, and bar 180-degree ocean and island views Recently renovated by award-winning interior designer Rémi Tessier 7th Place Aston Martin Residences, Miami, Florida Price: $21 million (£16.75 million) The final Sky Penthouse in this 66-story tower sold in February, marking it as the most expensive property in downtown Miami’s history. Luxurious amenities: Four bedrooms, seven bathrooms Gym, indoor pool, and staff quarters Expansive outdoor terrace Comes with a custom Aston Martin DBX supercar UK Home-Buying Tips for 2025 Thinking about buying a home in 2025? Here are some home-buying tips you need to know about recent UK property regulations: Stamp Duty Land Tax (SDLT) Applicable in England and Northern Ireland. Rates vary based on property value and buyer status (e.g. first-time buyer, overseas buyer). From 1 April 2025, the SDLT threshold for first-time buyers will drop from £425,000 to £300,000. Capital Gains Tax (CGT) Tax applies to gains made from property sales. Non-UK residents: 18% (basic rate) or 28% (higher rate). Anti-Money Laundering (AML) Regulations Non-UK residents must verify identity and fund sources, providing documents like bank statements and income records. Non-Resident Landlord (NRL) Scheme Landlords residing in the UK for less than six months annually must pay tax on rental income earned in the UK. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

With mortgage interest rates in the UK gradually declining, a wave of buyers is returning to the market, signalling a slow recovery in the UK property sector. Experts predict that 2025 could be the ideal time for property owners to sell. According to current tax laws, any profits earned from property sales are subject to Capital Gains Tax (CGT) in the UK. During the CGT declaration process, you may need to submit a CG34 form to HMRC. Many people are curious about this form: What is it? Is it mandatory? What happens if sellers choose not to submit it? What is the CG34 Form? When you sell an asset or property, you are required to report the transaction and pay CGT to HMRC. Typically, you must declare your gains within 60 days of the sale and pay the tax via the annual Self-Assessment system. However, what should you do if: The sale wasn’t at market value? The asset valuation is complex? You're unsure about the taxable amount? In such cases, HMRC offers a free service called the Post-Transaction Valuation Check (PTVC), which requires submitting a CG34 form. This process allows HMRC to review the valuation of the property at the time of transfer, ensuring the stated value is acceptable. Although using the PTVC service is optional, it’s highly recommended if you want to avoid future disputes with HMRC, such as challenges to your valuation that could result in appeals or additional professional fees. The CG34 form also helps prevent errors that might lead to penalties due to inaccurate declarations. Who Should Apply? The PTVC service applies to various assets, including: Land and property Shares Intangible assets like goodwill Tangible assets such as artwork If you're uncertain whether HMRC will accept your valuation, submitting a CG34 form is advisable.   For example: Selling Commercial Real Estate: If you sell a commercial property at a price agreed privately between the buyer and seller (not at market value), the CG34 form can confirm whether the valuation is acceptable for tax purposes. Transferring Private Company Shares: Since private company shares often lack a clear market valuation, submitting a CG34 form ensures your declared valuation aligns with HMRC's expectations. Applying for a Valuation Check 1. Complete the CG34 Form To initiate a valuation check, complete the CG34 form with detailed information about the asset and any supporting calculations or documents. For example, if selling property, include: Property type Address Ownership details Development plans Other valuation-relevant documents 2. Submission Timing HMRC typically requires three months to review a valuation report. Therefore, it’s recommended to submit the CG34 form at least three months before your Self-Assessment deadline. This allows sufficient time for negotiations or adjustments if needed.   3. Outcome of the Valuation Check After reviewing the submitted information, HMRC may: Agree with your proposed valuation Suggest an alternative valuation Request additional information If both parties agree on a valuation, you can proceed with your Self-Assessment confidently. HMRC won’t challenge the valuation in the future unless undisclosed facts emerge. If an agreement isn’t reached, discussions with HMRC and professional valuers may continue beyond the tax filing deadline. Completing the CG34 Form The CG34 form comprises several sections: Part 1: Taxpayer Information Provide personal details such as name, address, National Insurance Number, and Unique Taxpayer Reference (UTR).   Part 2: Asset Details Include comprehensive information about the asset: Asset Description: Detailed information about the asset and its features. Acquisition Date: Date you acquired the asset, critical for calculating CGT. Disposal Date: Date the asset was sold, used to determine the holding period. Acquisition Cost: Total cost, including related fees or taxes. Disposal Proceeds: Amount received from the sale. Part 3: Proposed Valuation Declare your suggested asset valuation, supported by evidence: Proposed Valuation: The value you believe is accurate. Justification: The basis for your valuation, citing factors such as market conditions or professional assessments. Part 4: Supporting Evidence Attach documents that support your valuation, such as: Professional valuation reports Comparable sales data Planning permissions or structural surveys Part 5: Declaration Sign and date the form to confirm the accuracy and completeness of the information provided. Some Advice from TB Accountants CGT can be complex, especially when dealing with high-value or unique assets. Filling out a CG34 form can be challenging without expertise. Consider consulting a tax professional to: Ensure accurate and complete information submission Identify potential tax relief opportunities Plan a reasonable tax bill For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

Following significant reforms to UK inheritance tax rules introduced by Chancellor Rachel Reeves in what has been dubbed the largest tax-raising budget in UK history, many individuals are seeking ways to reduce inheritance tax liabilities. One of the most common strategies is to gift assets during one’s lifetime. Over 200,000 Families Gift Property to Avoid Inheritance Tax In the 2023/24 tax year, the Nil-Rate Band (NRB) for inheritance tax was £325,000. Any amount above this threshold is taxed at a rate of 40%. One of the simplest ways to avoid inheritance tax (IHT) is to spend or gift money while alive. If you survive seven years after making a gift, the gift becomes exempt from inheritance tax. If you die within seven years, the tax rate on the gifted assets depends on how many years have passed: Gifts made within three years before death are taxed at 40% Gifts made three to seven years before death are taxed on a sliding scale Rising Number of Gifted Properties According to UK Land Registry data, approximately 130,000 properties were gifted each year in the past. By 2023, this number rose to 152,000, and in 2024, it has already exceeded 220,000. This trend indicates that over 200,000 families are transferring property ownership to children to avoid hefty inheritance tax bills. Additionally, a study revealed that nearly one-third of savers are considering gifting money to family members more frequently to reduce their inheritance tax burdens.   Potential Risks: What Happens When You Run Out of Money? While gifting assets to reduce inheritance, tax is a common strategy, experts caution against depleting resources entirely. If you give away too much to your children, you may face financial difficulties during retirement. It’s essential to ensure that your retirement income can support your long-term needs before committing to significant asset transfers. Taxes Involved When Transferring Property to Individuals If a property is transferred to an individual, inheritance tax isn’t the only concern. Other potential taxes include: Income Tax If the property is the donor's primary residence, no income tax applies. If it’s an investment property or a second home, capital gains tax (CGT) may apply. Capital Gains Tax (CGT) CGT applies to the profit (value increase) on the property at the time of the transfer. If the property has appreciated since purchase, the donor may need to pay CGT. Stamp Duty (SDLT) If the property has an outstanding mortgage, stamp duty is calculated based on the unpaid loan amount. If there’s no mortgage, stamp duty doesn’t apply. Taxes Involved When Transferring Property to a Company Another way to reduce inheritance tax is to hold property through a company. In this case, the property exists as shares in the company, and transferring ownership to the next generation involves transferring company shares rather than the property itself. However, this can trigger other taxes: Capital Gains Tax (CGT) CGT is calculated based on the difference between the original purchase price and the market value of the property at the time of transfer. Stamp Duty (SDLT) Even if it’s the company’s first property, SDLT is calculated at the rate for second homes, typically an additional 3%. If any company shareholders are overseas residents, an extra 2% overseas SDLT surcharge applies. The Key Takeaways While gifting property is an effective way to reduce inheritance tax, it’s vital to assess your financial situation thoroughly. Consider the impact on your retirement funds and ensure you have enough resources to sustain your lifestyle. Professional tax advice is highly recommended to navigate complex tax rules and identify optimal solutions tailored to your circumstances. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

Christmas may be over, but the financial aftermath lingers. While you can still imagine the aroma of turkey and red wine, for many, the festive season left behind a burden: debt. Research shows that many people rely on credit (credit cards or loans) to enjoy their holiday, leaving them with bills that can take months—or even longer—to pay off. Among those who used credit cards to fund their holidays, about a third admitted lacking confidence in their ability to repay.   The Holiday Hangover Some have joked, "Let me stay in my Christmas daze forever", dreading the moment they wake up to face mounting bills. But how can you tackle these post-holiday financial hangovers? Here are some practical tips to get back on track: Tip 1: Don’t Bury Your Head in the Sand Avoidance won’t help. Start by calculating your short-term debt, including credit cards, overdrafts, and ‘Buy Now, Pay Later’ agreements. Understand your instalment obligations, due dates, and minimum repayment requirements. While it’s not ideal to stick to just minimum payments, knowing this figure can provide a safety net in case of emergencies.   Tip 2: Assess Your Repayment Capacity Avoid overworking yourself or accruing new debts to pay off existing ones. Instead, create a budget and scrutinise your finances to identify areas where you can cut costs. This will determine how much you can reasonably allocate to repayments.   If your current budget doesn’t cover even minimum repayments, consider seeking help from debt charities like StepChange. These organisations can help you set up a budget, negotiate with creditors, and explore available options.   Tip 3: Prioritise Your Repayments Focus on keeping up with ‘Buy Now, Pay Later’ instalments and minimum credit card payments. Beyond that, tackle the highest-interest debts first using the ‘avalanche method’ — pay off the debt with the highest interest, then move to the next. This minimises interest costs.   Alternatively, the ‘snowball method’ involves paying off smaller debts first, which can provide a psychological boost. However, this approach may result in paying more interest overall.   Tip 4: Transfer Debt to Lower-Interest Options Research shows over half of borrowers aim to clear their Christmas debt within a month. However, nearly 40% take 1–6 months, and about 5% take over six months. During this time, interest accumulates: overdraft rates can reach 40%, store cards 30%, and credit cards over 20%.   To save on interest, consider transferring your debt to a lower-interest credit card. Look for balance transfer cards with interest-free periods, allowing you to allocate more money to the principal instead of interest. Essentially, prioritise consolidating debts onto the card with the lowest interest rate.   Tip 5: Develop Good Financial Habits Once your debts are paid, focus on cultivating better financial habits. Build both an emergency fund and a holiday savings fund for next year’s festivities. Consider longer-term goals such as pensions or Stocks and Shares ISAs. By planning ahead, you can avoid relying on credit for next year’s holiday season. Bonus Tax Tips for Side Income If you’ve taken on a side job to repay holiday debts, don’t forget to declare your additional income! In the UK, side hustles often require registering as a Sole Trader and filing a Self-Assessment Tax Return.   Sole Trader Status is Ideal for: Freelancers (e.g. designers, writers, consultants) Small business owners (e.g. online shops, restaurants, repair services) Part-time personal projects   Managing Taxes for Full-Time and Part-Time Work in the UK: Identify your main job: Typically, the job with higher income is considered your primary role. Use the correct tax codes: The primary job uses tax code 1257L (tax-free allowance up to £12,570). The secondary role uses BR (Basic Rate), taxing income at 20%. File your taxes correctly: Your primary job taxes are handled through PAYE, while your side income requires registering as self-employed and filing a Self-Assessment Tax Return. Adjust as needed: Inform HMRC if your work situation changes, such as your side gig becoming your main source of income. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

Many people unknowingly overpay their taxes when filing with HMRC - don't underestimate this potential oversight. Over the course of a tax year, individuals could end up overpaying by thousands, even tens of thousands of pounds. If you let HMRC keep this money, you'd be taking a big loss! Recently, we’ve helped many clients successfully reclaim their overpaid taxes. Checking for Overpayments Sometimes, HMRC will automatically send you a refund via cheque. However, this isn’t always the case, and some refunds may be missed. You can verify your tax situation by registering and checking through the Government Gateway: Log into your account. Check your annual tax details. Contact online support to explain your situation. Apply for a refund. Refunds can only be issued via cheque sent to a UK address, so be sure to plan ahead! Tax Codes: How They Work and Why They Matter Your tax code is assigned by HMRC and tells your employer how much Income Tax to deduct. It reflects your personal tax allowance and applicable tax rate for the specific tax year. Tax codes, such as 1257L or BR, can be found on your payslip, P45 (employment termination form), or P60 (annual tax summary). Breakdown: Numbers: Indicate your Personal Allowance (tax-free income limit). For example, 1257 means a tax-free allowance of £12,570 (2023/24 tax year). Letters: Reflect specific circumstances or adjustments to allowances. Common Tax Codes: L: Standard tax code for full Personal Allowance M/N: For Marriage Allowance (transferred or received allowance between spouses) BR: Basic Rate (20%) applied to secondary income D0/D1: Higher (40%) or Additional (45%) tax rates K: Benefits or income exceeding your allowance, requiring additional tax NT: No tax due (e.g., certain overseas income) S/C: Scottish or Welsh tax rates Emergency Codes: Codes ending with W1, M1, or X (e.g., 1257L W1) indicate temporary emergency codes When and Why Tax Codes Change Tax codes can change due to factors like changes in Personal Allowance, job switches, or multiple income sources. Common triggers include: Starting a new job without a P45 form Receiving additional income (e.g., from a second job or pension) Changes in salary or benefits Starting or stopping taxable state benefits If your tax code changes, HMRC will notify you and your employer via a P2 Notice of Coding.   Ensure Your Tax Code is Correct To avoid overpaying or underpaying tax: Check your payslip regularly for the correct tax code Update your tax details if your circumstances change (e.g. marriage, new job) Apply for allowances like Blind Person’s Allowance or professional expenses Review HMRC notifications for accuracy and explanations If your deductions seem incorrect, it may be due to a tax code error. Contact HMRC promptly to correct it. Need Help? If you’re unsure about your tax situation, overpayments, or how to file your return, consult a professional tax expert or accountant. A specialist can help you reclaim overpaid taxes and navigate the filing process with ease. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .

Even though more than two months have passed since the Labour Party released its first Autumn Budget, the financial measures included continue to spark heated discussions online—especially the pension policies. The New Pension Policy Could Trigger a Chain Reaction Since Rachel Reeves announced the end of the inheritance tax exemption for pensions starting from April 2027, the policy has led to strong reactions from different groups, with predictions of potential ripple effects. 1. High Taxes on Inherited Pensions Previously, pensions were considered a tax-efficient way to save. However, from April 2027, pensions will be included in the calculation of estate value and will be subject to a 40% inheritance tax. Estimates suggest that this policy change will cost grieving families an additional £65,000 on average. Additionally, it may discourage people from saving into their pension accounts due to concerns over taxation. Experts warn that beneficiaries of those who pass away after the age of 75 may face a combination of inheritance tax and income tax. This means that, in some cases, high-rate taxpayers inheriting a pension could face a marginal tax rate of up to 90%. 2. Complex Tax Calculations for Pensions Pension providers have raised concerns over the Chancellor’s plan, noting that the tax calculation process is highly complicated. This could pose an ongoing administrative challenge for pension managers. How Can You Increase Your Pension Income? In recent years, inflation has driven up the cost of living significantly, yet pension amounts have not increased proportionally. The rising cost of retirement means that more people are struggling to meet their financial needs. The average pension shortfall—the gap between what you have and what you need for a moderate retirement income—has grown to £31,546, four times the figure in 2019. Simply put, the amount of money that once bought a whole loaf of bread now buys only a quarter of one. So, how can you boost your pension income? Here are a few strategies to consider: 1. Increase Your Pension Contributions If you receive a pay rise or switch jobs, consider increasing your pension contributions. This will have a significant impact on your final pension amount. You can also discuss with your employer whether they are willing to increase their contributions to your pension fund. 2. Locate Your Lost Pensions When planning for retirement, reviewing pensions from previous employers is crucial. Frequent job changes and house moves make it easy to lose track of old pension accounts. According to the Pensions Policy Institute, over 3 million pension accounts in the UK are currently unclaimed. Recovering these lost pensions could significantly improve your retirement security. If you suspect that you have lost a pension, you can contact the government’s Pension Tracing Service. By providing your employer’s or pension provider’s name, the service can help you locate and retrieve your pension funds. Once you find your lost pensions, you may consider consolidating them for easier management. Combining pensions can help streamline tracking and planning. However, before making this decision, ensure that consolidation does not result in high exit fees or the loss of valuable benefits. 3. Plan Your Pension Carefully Once you have a clear understanding of all your pension assets, you can estimate your retirement income in advance. Regular reviews will help you stay on track towards your ideal retirement lifestyle. If any issues arise, early planning gives you time to adjust your strategy accordingly. On a broader scale, the government is currently reviewing pension policies to explore ways to provide better retirement security for the public. The goal is to reduce the number of lost pensions and address the increasing number of small pension pots, ensuring that every pound of pension savings reaches its intended recipient without being overlooked or wasted. If you find pension rules confusing or need assistance with pension tax planning, don’t worry! Simply click the link below to get in touch with us. At TB Accountants, our team of professional tax experts is here to provide free one-on-one financial and tax consultations, helping you navigate the complexities of pension regulations and develop a tailored tax strategy to safeguard your wealth. For individuals and businesses looking for UK taxation services, use our contact form  to get in touch for more information. Get in touch with us at info@tbgroupuk.com  or for a free one-to-one consultation.  This article is intended as general guidance only, and does not replace any legal or professional advice.  For enquiries, please contact  TBA Group  via  email  or  WhatsApp .