October 7, 2024

Autumn Statement 2024: What Could It Mean for High Net-Worth Individuals and Corporations?

header image for the UK Autumn Budget 2024

What Could It Mean for High Net-Worth Individuals and Corporations?

As we approach the highly anticipated Autumn Statement, there’s a palpable sense of curiosity—and perhaps concern—amongst high net-worth individuals (HNWs) and corporate leaders. The economic landscape is evolving rapidly, and it’s never been more crucial to be proactive rather than reactive. At Sandstone Tax, we understand the value of staying ahead of the curve, particularly when the outcomes of government policies can deeply affect your wealth management and business planning strategies.

What Can We Expect?

The Autumn Statement is typically a reflection of the government’s shifting priorities, especially in the face of current economic pressures. With inflation still a significant challenge and ongoing global uncertainty, here are a few areas we think HNWs and corporations should keep a close eye on:

  1. Capital Gains Tax Adjustments: There have been murmurs in Westminster about potential changes to Capital Gains Tax (CGT) rates or allowances. The government may seek to align CGT more closely with income tax, potentially increasing the tax burden on significant asset sales. This could impact anyone looking to sell investments, properties, or a business.
  2. Changes to Wealth Taxation: Given the increasing discourse around wealth inequality, the Treasury may consider increasing taxes on wealth. This could affect personal wealth held in diverse portfolios or assets, potentially making tax-efficient wealth structuring even more imperative.  The Chancellor has ruled out the introduction of a Wealth Tax but increased taxes on transactions, etc is a tax on wealth.
  3. Corporate Tax Environment: For businesses, there’s a possibility of more nuanced corporate tax policy announcements. The government, balancing its growth agenda with fiscal prudence, may tweak rates or introduce more targeted reliefs for specific sectors. Companies that have significant R&D activities, for instance, might be affected by any adjustment to R&D tax credits.
  4. Estate Planning & Inheritance Tax (IHT): IHT has been a topic of debate for years, with many expecting simplifications that never quite arrives. We are watching closely to see if this Autumn Statement will finally bring clarity or new thresholds for IHT, directly affecting how HNW individuals plan their estates.  Or perhaps a wholly new approach based on the residence of the taxpayers.
  5. Impact of Green Policy Commitments: There is also speculation that the Chancellor might pivot towards more environmentally-focused tax incentives, especially with a focus on renewable investments. This could bring opportunities for both individuals and corporations to benefit from green initiatives if they position themselves accordingly.

Why Staying Ahead Matters

For HNW individuals and corporations alike, the real challenge isn’t just responding to tax changes but anticipating them and adjusting strategies in advance. From restructuring your portfolio to navigating corporate investments, understanding the ramifications early is key.

At Sandstone Tax, we make it our mission to ensure that our clients are not merely well-informed but well-prepared, leveraging every opportunity available to maximise tax efficiency. We know that even the smallest adjustment in legislation can mean the difference between opportunity and exposure.

How to Prepare Now

  1. Review Investment Holdings: If capital gains changes are coming, it might be worth reviewing your portfolio now to decide if any action should be taken before the new rules are implemented.
  2. Estate Planning Revisited: It’s prudent to revisit your estate plan before any changes to inheritance tax rules. Early action can safeguard the legacy you wish to pass on.
  3. Corporate Strategy Alignment: For corporations, assessing your position in light of potential R&D credit changes or other relief shifts could save significant tax liabilities down the road.

Get Ahead of the Changes

The time to prepare is now. We are here to help you navigate these potential changes, ensuring your financial strategies are aligned with both current and upcoming tax laws. The Autumn Statement is just around the corner, and with it comes both challenges and opportunities.

If you’re concerned about how the upcoming changes might affect you or your business, why not schedule a consultation with us at Sandstone Tax? Together, we can develop a strategy to ensure you’re well-positioned, whatever comes our way.

Let’s Talk Strategy—Book Your Consultation Today