The UK enacted the Finance (No. 2) Act 2024 after receiving royal assent on 24 May, 2024. This legislation implements several measures announced in the 2024 Spring Budget.
The annual charge for income tax for the 2024-25 tax year and the corporation tax for the financial year 2025 will remain unchanged.
It introduces an Energy Security Investment Mechanism that stipulates the Energy Profits Levy (EPL) will be terminated early if the average prices of oil and gas over a reference period are at or below the 20-year average ending on 31 December, 2022.
Measures have been introduced to prevent individuals from using companies to circumvent anti-avoidance legislation or Transfer of Assets Abroad (ToAA) rules, which went into force on 6 April, 2024.
Starting 6 April, 2024, the higher Capital Gains Tax rate for residential property sales will be reduced from 28% to 24%.
The Capital Gains Tax rate of 18% will remain unchanged if it falls within an individual’s basic rate band.
A UK Independent Film Tax Credit at 53% is established for films that pass a new British Film Institute test and have a production budget under GBP 15 million. Tax credits can be claimed starting 1 April, 2025, for expenditure incurred from 1 April, 2024, onwards.
Starting 1 April, 2025, the rates for Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR), and Museums and Galleries Exhibitions Tax Relief (MGETR) will be permanently set at 40% for non-touring productions and 45% for touring productions.
