{"id":5677,"date":"2025-02-12T10:19:43","date_gmt":"2025-02-12T10:19:43","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/quilter\/?p=5677"},"modified":"2025-02-17T12:26:23","modified_gmt":"2025-02-17T12:26:23","slug":"the-only-way-to-drive-economic-growth-is-to-invest-invest-invest","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/quilter\/2025\/02\/12\/the-only-way-to-drive-economic-growth-is-to-invest-invest-invest\/","title":{"rendered":"The only way to drive economic growth is to invest, invest, invest"},"content":{"rendered":"
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Labour Budget introduced \u00a340bn tax rises, stating that investment is key to driving economic growth\u00a0<\/td>AIM shares lose IHT exemption; 20% rate applies from April 2026 under new tax reforms\u00a0<\/td>Basic and new State pensions will rise by 4.1% in 2025-26, in line with earnings growth\u00a0<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n\n
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Rachel Reeves delivered the first Labour Budget in 14 years on 30 October, during which she announced \u00a340bn of tax rises. She outlined a series of new tax and spending measures, saying, <\/strong>\u201cThe only way to drive economic growth is to invest, invest, invest.\u201d<\/em><\/strong> <\/p>\n<\/div>\n\n

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The Office for Budget Responsibility\u2019s (OBR\u2019s) 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. <\/p>\n<\/div>\n\n

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Some of the main personal taxation pledges included:<\/strong> <\/p>\n<\/div>\n\n

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  • 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 <\/li>\n<\/div><\/ul>\n<\/div>\n\n
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    • IHT nil-rate bands will stay at current levels until 5 April 2030 (previously 2028) <\/li>\n<\/div><\/ul>\n<\/div>\n\n
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      • Unused pension funds and death benefits payable from a pension will be subject to IHT from 6 April 2027 <\/li>\n<\/div><\/ul>\n<\/div>\n\n
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        • The government intends to reform Agricultural Property Relief and Business Property Relief from 6 April 2026 <\/li>\n<\/div><\/ul>\n<\/div>\n\n
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          • 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 \u2018not listed\u2019 on the markets of a recognised stock ex-change, including AIM. An IHT rate of 20% will apply from April 2026 <\/li>\n<\/div><\/ul>\n<\/div>\n\n
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            • Domicile status is to be removed from the tax system and replaced with a residence-based regime from 6 April 2025 <\/li>\n<\/div><\/ul>\n<\/div>\n\n
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              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 (\u00a3230.25 a week for the full, new flat-rate State Pension and \u00a3176.45 a week for the full, old basic State Pension). <\/p>\n<\/div>\n\n

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              It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.<\/em><\/strong> <\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

              Labour Budget introduced \u00a340bn tax rises, stating that investment is key to driving economic growth\u00a0 AIM shares lose IHT exemption; 20% rate applies from April 2026 under new tax reforms\u00a0 Basic and new State pensions will rise by 4.1% in 2025-26, in line with earnings growth\u00a0 Rachel Reeves delivered the first Labour Budget in 14 […]<\/p>\n","protected":false},"author":4,"featured_media":5678,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,77],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/5677"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/comments?post=5677"}],"version-history":[{"count":6,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/5677\/revisions"}],"predecessor-version":[{"id":5719,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/5677\/revisions\/5719"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media\/5678"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media?parent=5677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/categories?post=5677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/tags?post=5677"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/hd_content_source?post=5677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}