{"id":1795,"date":"2025-04-04T16:04:31","date_gmt":"2025-04-04T15:04:31","guid":{"rendered":"https:\/\/www.redstarwealth.co.uk\/blog\/?p=1795"},"modified":"2025-04-04T16:04:31","modified_gmt":"2025-04-04T15:04:31","slug":"new-tax-year-changes-from-6th-april-2025","status":"publish","type":"post","link":"https:\/\/www.redstarwealth.co.uk\/blog\/new-tax-year-changes-from-6th-april-2025\/","title":{"rendered":"New Tax Year: Changes from 6th April 2025"},"content":{"rendered":"<p style=\"font-weight: 400;\">The new tax year is now right around the corner, with the 2025\/26 tax year starting on 6<sup>th<\/sup> April 2025. With that in mind, let\u2019s have a quick rundown of the changes we will be seeing from Sunday onwards with the new tax year\u2026<\/p>\n<h2 style=\"font-weight: 400;\">National Insurance Changes<\/h2>\n<p style=\"font-weight: 400;\">On 6<sup>th<\/sup> April 2025, the rate of employers\u2019 National Insurance contributions (NICs) will increase from 13.8% to 15%.\u00a0The threshold for when employers start to pay this will now be \u00a35,000 a year (down from \u00a39,100). This is known as the Secondary Threshold, and this new amount of \u00a35,000 will be in effect until 5<sup>th<\/sup> April 2028, before increasing in line with Consumer Prices Index (CPI).<\/p>\n<p style=\"font-weight: 400;\">Employment Allowance aims to help small businesses reduce their NI tax burden, allowing employers which are eligible to claim to reduce their annual NI liability. From 6<sup>th<\/sup> April, the maximum Employment Allowance will increase from \u00a35,000 to \u00a310,500.\u00a0Additionally, the current \u00a3100,000 threshold for eligibility will be removed, meaning all eligible employers with employer NICs will be able to claim.<\/p>\n<p style=\"font-weight: 400;\">The Small Profits Threshold is increasing to \u00a36,845 (up from, \u00a36,725) for the 2025\/26 tax year, and the rate will increase by 1.7%. The Lower Earnings Limit will also increase by 1.7% from 6<sup>th<\/sup> April 2025, and the threshold will be \u00a36,500 per year (up from \u00a36,395).<\/p>\n<h2 style=\"font-weight: 400;\">State Pensions<\/h2>\n<p style=\"font-weight: 400;\">Both the basic and new State Pension will increase by 4.1% due to the Triple Lock guarantee.<\/p>\n<p style=\"font-weight: 400;\">The Triple Lock means that the State Pension increases every tax year by whichever of the following is highest:<\/p>\n<ul>\n<li style=\"font-weight: 400;\">A 2.5% increase<\/li>\n<li style=\"font-weight: 400;\">In line with inflation, as measured by the Consumer Prices Index in the September of the previous year<\/li>\n<li style=\"font-weight: 400;\">Average earnings across the UK<\/li>\n<\/ul>\n<p style=\"font-weight: 400;\">The 4.1% increase is in line with earnings growth, which was the highest of these figures.<\/p>\n<h2 style=\"font-weight: 400;\">Inheritance Tax (IHT)<\/h2>\n<p style=\"font-weight: 400;\">The IHT liability for non-UK domiciled individuals is currently based on their domicile status on a remittance basis (where you only pay UK tax on any income or gains you bring to the UK). From 6<sup>th<\/sup> April 2025, the UK will move to a residence-based system where individuals who have been a UK resident in 10 out of the last 20 tax years will be charged IHT. You can find out more about these changes <a href=\"https:\/\/www.gov.uk\/government\/publications\/tax-changes-for-non-uk-domiciled-individuals\/reforming-the-taxation-of-non-uk-domiciled-individuals\">here<\/a>.<\/p>\n<p style=\"font-weight: 400;\">The changes affecting levels of Agricultural Property Relief will not be in place until 6<sup>th<\/sup> April 2026 (the start of the 2026\/27 tax year). You can find out more about this <a href=\"https:\/\/www.redstarwealth.co.uk\/blog\/autumn-budget-an-overview\/\">here<\/a>.<\/p>\n<h2 style=\"font-weight: 400;\">Parental Leave and Pay<\/h2>\n<p style=\"font-weight: 400;\">Statutory Parental Pay is set to increase in the new tax year, rising to either \u00a3187.18 per week (up from, \u00a3184.03) or 90% of the employee\u2019s average weekly earnings, whichever is lower.<\/p>\n<p style=\"font-weight: 400;\">Additionally, the Neonatal Care (Leave and Pay) Act 2023 will come into effect on 6<sup>th<\/sup> April. Neonatal Care Leave will apply to parents of babies who are admitted into neonatal care up to 28 days old who have a continuous hospital stay of 7 days or longer. Eligible parents will be able to take up to 12 weeks of leave (and pay, if eligible) in addition to any other leave entitlements, such as maternity and paternity leave. You can read the Act in full <a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/2023\/20\">here<\/a>.<\/p>\n<h2 style=\"font-weight: 400;\">Statutory Sick Pay<\/h2>\n<p style=\"font-weight: 400;\">Statutory Sick Pay will increase to \u00a3118.75 per week (up from \u00a3116.75) from 6<sup>th<\/sup> April 2025. Additionally, the government has announced that we will see <a href=\"https:\/\/www.gov.uk\/government\/news\/changes-to-sick-pay-will-help-people-stay-in-work-and-grow-economy\">changes to Statutory Sick Pay<\/a>\u00a0which you can read more about <a href=\"https:\/\/www.redstareducation.co.uk\/blog\/sick-pay-to-be-extended-to-lowest-earners\/.\">here<\/a>.\u00a0It is expected that these changes will come into effect next year.<\/p>\n<h2 style=\"font-weight: 400;\">Capital Gains Tax<\/h2>\n<p style=\"font-weight: 400;\">For disposals made on or after 6<sup>th<\/sup> April 2025, gains that are eligible for Business Asset Disposal relief will be taxed at 14% (going up to 18% from 6<sup>th<\/sup> April 2026). This is an increase from the current rate of 10%.<\/p>\n<p style=\"font-weight: 400;\">\n<p>&nbsp;<\/p>\n<p style=\"font-weight: 400;\"><em><strong>Please also note that Minimum Wage has increased as of 1<sup>st<\/sup> April 2025. You can read more about this on <a href=\"https:\/\/www.redstarwealth.co.uk\/blog\/autumn-budget-an-overview\/\">our blog about the Autumn Budget<\/a>.\u00a0<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The new tax year is now right around the corner, with the 2025\/26 tax year starting on 6th April 2025. With that in mind, let\u2019s have a quick rundown of the changes we will be seeing from Sunday onwards with the new tax year\u2026 National Insurance Changes On 6th April 2025, the rate of employers\u2019 [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":1801,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[1303,1413],"tags":[1570,1571,1391,430,112,113,553,100,1573,650,142,1577,1574,1575,651,1572,284,1576,1578,199,1177,197],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New Tax Year: Changes from 6th April 2025 - Red Star Wealth<\/title>\n<meta name=\"description\" content=\"The new tax year is now right around the corner, with the 2025\/26 tax year starting on 6th April 2025......\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.redstarwealth.co.uk\/blog\/new-tax-year-changes-from-6th-april-2025\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Tax Year: Changes from 6th April 2025 - 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