On the second day of the Labour Party Conference 2024, Rachel Reeves gave a speech about the economy.

Along with giving a clearer picture about the approach that the Government will take when making taxation decisions, Reeves gave more details about some of the tax changes that will be expanded upon in the Autumn Budget next month. 

With our clients in mind, we wanted to highlight a few elements of her speech that we thought might interest or impact you the most.

1. Income Tax, National Insurance and VAT
Reeves used her speech to repeat her promise not in to increase basic, higher or additional rates of income tax, NI or VAT.

This means that we must still wait to hear how the Government intends to find the budget needed to fulfil its election promises.

The Institute of Fiscal Studies (IFS) predicts that the shortfall in income will mean a rise in other taxes. Capital Gains Tax (CGT), Inheritance Tax and Stamp Duty, remain the obvious targets.

2. Wealth taxes 
With potential increases in CGT and Inheritance Tax on the horizon as well as a potential reduction in pension tax relief for top earners, it feels as though the Labour Government is focusing tax rises on those that they believe should be paying more into the public purse. We will have to wait until 30 October to see exactly what happens and how any changes will impact those with a higher wealth portfolio.

3. Non-domicile loophole 
Reeves also used her speech to restate Government plans to end the non-domicile loophole. This means that UK residents not permanently living in the UK will have their foreign income and gains taxed in the UK whether they bring them into the UK or not.

4. Corporation tax 
With no sign of hikes in corporation tax on the cards, Reeves appeared to use her speech to encourage small business owners and current and potential investors in the UK, not to hold back with plans to invest and expand their business interests. Talking of small business owners and investors, she stressed that she is part of a government that ‘has their back’ and manages a tax system that ‘will support not punish them’. We wait to see what this actually looks like in the budget next month.

5. Energy efficiency standards for rental properties 
Away from the Labour Party conference, a Government Press Release today expressed the beginning of consultations to see whether rental properties will be required to meet an Energy Performance Certificate C or equivalent by 2030. Currently private rental properties can be rented out if they meet an Energy Performance Certificate rating E.

If this requirement changes, people owning rental properties in the UK could face significant financial costs to ensure that their properties meet the new required standards. 

As many of our clients own rental properties, it might be useful to keep an eye on how the consultation develops over the coming months.

In recent months we have looked at some of the areas mentioned in Reeves’s speech in our own newsletters and videos. You can use the links above to get more information and advice on these areas.

If you would like to speak to us in person about these or any other tax queries, then please feel free to contact us directly.

Whether you are based in the UK or overseas, we can help you to understand the tax implications of any of these potential changes and help you find the best financial outcome for your specific circumstances.

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