Rachel Reeves delivered the first Labour Budget in 14 years on 30 October, during which she announced £40bn of tax rises. She outlined a series of new tax and spending measures, saying, “The only way to drive economic growth is to invest, invest, invest.”

The Office for Budget Responsibility’s (OBR’s) economic projections outlined during the Budget predicted economic growth of 2.0% in 2025, before tempering to 1.6% by the end of the Parliament. Inflation is predicted to average 2.6% in 2025.

- The lower and higher main rates of Capital Gains Tax (CGT) increased to 18% and 24% respectively for disposals made on or after 30 October 2024.

- IHT nil-rate bands will stay at current levels until 5 April 2030 (previously 2028).

- Unused pension funds and death benefits payable from a pension will be subject to IHT from 6 April 2027.

- The government intends to reform Agricultural Property Relief and Business Property Relief from 6 April 2026.

- AIM shares will no longer be exempt from IHT. The government is reducing the rate of business property relief to 50% in all circumstances for shares designated as ‘not listed’ on the markets of a recognised stock exchange, including AIM. An IHT rate of 20% will apply from April 2026.

- Domicile status is to be removed from the tax system and replaced with a residence-based regime from 6 April 2025.

- In addition, the government has confirmed that Basic and new State Pensions will increase by 4.1% in 2025/26, in line with earnings growth (£230.25 a week for the full, new flat-rate State Pension and £176.45 a week for the full, old basic State Pension).