Tax E-News – December 2024

Welcome to the December edition of Tax E-News. We hope that you find this informative. Please contact us if you wish to discuss any matters in more detail. Have a great Christmas and best wishes for 2025.

December 2024

FARMERS CAMPAIGNING FOR AGRICULTURAL PROPERTY RETHINK

The announcement in the Autumn Budget about restrictions to inheritance tax (IHT) agricultural and business property relief from April 2026 has upset farming businesses in particular, resulting in a demonstration in London on 19th November.
From 6 April 2026, it is proposed that 100% relief will only apply to the first £1 million of combined agricultural and business property […]

BRING FORWARD SUCCESSION PLANNING TO AVOID A BIG IHT BILL

The current tax rules encourage farmers and other business owners to hold on to their business until death, when the assets then pass to the next generation at market (probate) value for capital gains tax (CGT). This is effectively a tax-free uplift of the value of the business, and combined with 100% APR and BPR, is currently the optimum tax strategy. However, with people living longer […]

CHECK YOUR STATE PENSION ENTITLEMENT

HMRC have developed an app that can help people prepare for their retirement. Individuals can use the app to check their State Pension Forecast, allowing them to:
• see their State Pension age;
• view their forecast State Pension amounts based on potential contributions; and
• view how much their State Pension would currently be worth, based on National Insurance contributions to date.
The app can also be used to check National Insurance contribution […]

PAYING EMPLOYEES EARLY BEFORE CHRISTMAS

Some employers need to pay their employees earlier than usual in December. This can be for several
reasons, such as businesses closing during the festive period and needing to pay workers earlier than normal.
As in earlier years HMRC have announced that they have relaxed the RTI (Real Time Information) reporting
obligations […]

REMEMBER CHRISTMAS GIFTS OF UP TO £50 PER EMPLOYEE ARE TAX FREE

Employers should note that certain gifts to staff at Christmas are tax free if structured correctly. Employers
are allowed to provide their directors and employees with certain “trivial” benefits in kind tax free. This
exemption applies to small gifts to staff at Christmas where the cost to the employer is no more than £50 […]

CHRISTMAS PARTY TIME!

There continues to be no taxable benefit for employees provided that all staff are invited, and the cost to
the employer does not exceed £150 a head, inclusive of VAT.
If you have already had an summer event, provided the combined cost of the two events is no more than
£150 a head, there would be no taxable benefit in kind. If, however, the summer event cost […]

ADVISORY FUEL RATE FOR COMPANY CARS

The table below sets out the HMRC advisory fuel rates from 1 December 2024. These are the suggested
reimbursement rates for employees’ private mileage using their company car.
Where the employer does not pay for any fuel for the company car, these are the amounts that can be
reimbursed in respect of business journeys without the amount being taxable on the employee: […]

DIARY OF MAIN TAX EVENTS

DECEMBER 2024 / JANUARY 2025