UK’s Finance Bill 2024-25, which is based on the Autumn Budget 2024, underwent its second reading debate in the House of Commons on 27 November 2024.
This followed its initial introduction and first reading on 6 November 2024. The bill passed its second reading in parliament with a vote of 332 to 176.
The Finance Bill 2024-25 was introduced to implement various tax measures of the Autumn Budget 2024, which was delivered by Chancellor Rachel Reeves on 30 October 2024.
The bill will proceed to committee stages, where provisions on capital gains tax, oil and gas taxation, and stamp duty land tax will be reviewed by MPs on 10-11 December 2024.
Capital gains tax
The Bill proposes increasing the capital gains tax rates to 32% and to be applied as an interim measure from 6 April 2025, ahead of reforming carried interest more fully in a future finance bill. The Bill also makes changes to the main rates of capital gains tax by increasing them to 18% and 24% from 30 October 2024.
Oil and gas taxation
The UK Government is expected to increase the energy profits levy from 35% to 38%, and to extend the period over which the levy applies by one year. The Government also wants to end allowances by removing the levy’s core investment allowance, which was unique to oil and gas taxation.
Stamp duty surcharge
The government has decided to increase the non-resident stamp duty surcharge as well as wants a higher rate of stamp duty on additional dwellings, from three percentage points to five percentage points above the standard residential rate.
