Autumn budget: dentists have ‘little to be pleased about’
Looking at what was announced in the autumn budget, Vinay Rathod shares his thoughts on why it spells bad news for dentists.
The clocks have changed, the days are darker and the Autumn budget for 2024 has been revealed…
Many were surprised at the level to which this government have raided the pockets of the middle class earners and those with moderate wealth. A labour government was something many dentists will have feared – and they will likely feel their fears have been brought to life.
What was announced?
Financial advisors are reeling with the impact of pensions being subject to inheritance tax (IHT) from 2027. Many had utilised pension contributions due to the tax treatment – something that has left many years of well-intentioned planning now creating a large jump in their family’s future IHT bills.
More IHT raids on business property relief – now reformed to only give 50% relief for assets over £1 million instead of full relief, and for the slightly riskier investors – only 50% relief for AIM shares (Alternative Investment Market).
Mortgage brokers echo similar concerns over the sudden sharp rise in stamp duty for many. For those buying additional properties, or buy to let properties within a Ltd company, it will now cost an additional 5% instead of 3% (in England and Wales). With this change being immediate, many will face a nasty shock on purchases already well underway.
Employers are reeling due to the additional employers national insurance contribution (NIC) which increases to 15%, and the secondary threshold reducing from £9,100 to £5,000. Combined with the increase in minimum and living wage, many businesses will see increased costs.
For already struggling NHS practices, this will be a concern – however, the increased pay for those most in need will be a welcome boost to those who really need it.
- Capital gains tax (CGT) sees an increase in lower and higher rate to 18% (from 10%) and 25% (from 20%) respectively – with immediate effect
- Business asset disposal relief (BADR – formerly entrepreneurs relief) sees an increase in qualifying gains from 10% to 14% from April 2025 and 18% from April 2026
- As many expected (and worried), VAT will now be applied to private school fees
- Income tax thresholds will be frozen until 2028, after which it is planned to rise with inflation
- IHT thresholds frozen until 2030.
Negative impact
This article is not intended to be one of a political nature, but as with most things, often it is difficult to remain impartial when discussing the impact to ourselves and those around us.
For most readers of this article, you will likely feel there’s little to be pleased about and a lot to feel negatively impacted by. However, we should consider ourselves fortunate to be part of a demographic that will largely be ‘less well off’ as opposed to being pushed into poverty.
While we may not agree with the methods of today’s government, we should agree that those less fortunate will see a much needed improvement in their quality of lives.
Let us hope that step two of this government’s plan is to do better with the more than ample tax revenue this country’s tax payers already contribute – and the bureaucrats and inflated costs of tendered work are also targeted… otherwise we may find it less easy to look on the bright side.
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