Advertising Feature What does the 2024 Budget mean for UK flight crew? On 30th October 2024, Rachel Reeves delivered Labours first budget in 14 years a highly anticipated moment that stirred up both anxiety and speculation. With a mandate to stablilse what has been called a broken economy and address a 22 billion fiscal gap inherited from the previous administration, Labour faced intense scrutiny over how theyd navigate these financial challenges. To help you make sense of the key changes and how they may affect your financial plans, weve distilled the 2024 Budget down to the essentials: Heres what BALPA members should be aware of and how your industry might be affected: Air Passenger Duty: Heres how you might be affected: Capital Gains Tax: Capital Gains Tax (CGT) rates increased from 30th October 2024. Basic rate taxpayers will see an increase from 10% to 18%, while higher and additional rate taxpayers from 20% to 24%. This impacts gains on assets beyond property, affecting high-networth individuals and investors.. Inheritance Tax: The new APD rates, which will apply from 2026 are shown below: Significant changes to Inheritance Tax (IHT) are in the horizon, with adjustments to agricultural and business property reliefs from April 2026. From 1 April 2026 Bands (distance in miles from London Reduced rate (lowest class of travel) Standard rate (1) (other than the lowest class of travel) Higher rate (2) Pensions: Domestic band 8 16 142 Band A (0 to 2,000 miles) 15 32 142 Previously exempt from IHT, most pensions will now be included in estates for IHT calculation purposes if unspent, stating in 2027. This may affect estate planning strategies for individuals looking to pass on wealth. Band B (2,001 to 5,500 miles) 102 244 1,097 Band C (over 5,500 miles) 106 253 1,141 (1) If any class of travel provides a seat pitch in excess of 1.016 meters (40 inches) the standard rate is the minimum rate that applies. (2) The higher rate applies to flights aboard aircraft of 20 tonnes and above with fewer than 19 seats. Source: GOV.UK Air Passenger Duty: rates from 1 April 2026 to 31 March 2027. Sustainable Aviation Fuel: The UK Budgets extension of the Advanced Fuels Fund for another year marks a crucial step forward for the aviation sector as it prepares for the Sustainable Aviation Fuel (SAF) mandate starting in 2025. This continued funding highlights the governments commitment to sustainable aviation technologies and the vital role they play in reducing the industrys carbon footprint, positioning the UK at the forefront of environmentally responsible air travel. National Insurance: Employer National Insurance Contributions (NICs) will rise to 15% starting from April 2025, with the thresholds for contributions reduced from 9,100 to 5,000. This adjustment increases costs for employers, particularly affecting those with highersalary employees. Stamp Duty Land Tax: No significant changes to Stamp Duty Land Tax (SDLT) were mentioned in this budget, so current rates and exemptions remain in place. Non-Doms: The tax benefits for non-domiciled individuals (non-doms) will be removed from April 2025. Non-doms will be subject to UK tax on their worldwide income, and inheritance tax will apply to global assets for those who are resident in the UK for 10 out of the last 20 years. This marks a shift to a residence-based tax regime, impacting foreign income earners in the UK. As always, the devil is in the detail regarding the above changes and the upcoming HM Treasury Budget Notes will be critical in uncovering any nuances. Seeking professional financial advice is advisable now more than ever. Should you wish to discuss how the above may affect your personal situation in more detail, please feel free to contact us via one of the following: Office Telephone number: 01793 741246 Email: Lewingtonwealth@sjpp.co.uk Website: www.lewingtonwealth.co.uk Corporation Tax: The corporate tax rate is capped at 25% for the current Parliament, ensuring stability for businesses. Additionally, capital allowances such as full expensing and R&D relief are maintained to support corporate investment and growth. Best wishes, Lewington Wealth Management Ltd. The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. 01793 741246 lewingtonwealth@sjpp.co.uk lewingtonwealth.co.uk lewingtonwealth.co.uk lewingtonwealth.co.uk THE LOG Autumn 24 pp08-09 PAG.indd 8 2 Watts Barn The Old Dairy, Badbury Swindon, Wiltshire SN4 0EU Swindon, Swindon, Wiltshire Wiltshire SN4 SN4 0EU 0EU Above & Beyond Lewington Wealth Management Ltd is an Appointed Representative of and represents only St. Jamess Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Groups wealth management products and services, more details of which are set out on the Groups website www.sjp.co.uk/products. SJP Approved 07/11/2024 SJPSJP Approved Approved 07/11/2024 07/11/2024 13/11/2024 14:16