September Bulletin 2024
Dear Client
As temperatures fall and with evenings drawing in earlier, it's a good time to reflect on recent events.
The Bank of England (BoE) decided to hold interest rates at 5% in its most recent monetary review following an 8:1 vote. The next meeting is in November with the expectation that they will be reduced further then. The Labour government’s first budget will be delivered on Wednesday 30th October and there is much speculation about what may or may not appear.
This month's ABMV tax bulletin we will be covering:
EIS and VCT extended for ten years
end to furnished holiday letting fhl tax breaks confirmed
Car Fuel Rate changes latest changes
Second homes and empty properties
2023/24 Personal Tax Works
EIS and VCT extended for ten years
Two popular investment incentives offering a number of tax breaks were due to expire in 2025. However, the government has announced that they will be extended. What's the full story?
Shares in qualifying companies must be issued before a certain date, known as the sunset date, in order to claim tax relief under the enterprise investment scheme (EIS) or the venture capital trust (VCT). The sunset date was set at 6 April 2025 and the previous government planned to extend this by ten years. The current government has now issued a statement confirming that the planned extension will go ahead.
End to Furnished Holiday Letting FHL tax breaks confirmed
The change of government cast doubt on whether the scrapping of furnished holiday letting (FHL) tax breaks would go ahead. New draft legislation confirms that it will. What’s the full story?
In March 2024 the government announced that the long-standing tax breaks for landlords who let furnished holiday accommodation would come to an end on 5 April 2025. However, it was clear that because of the nature of the tax breaks a clean break wouldn’t be possible; therefore transitional rules were needed. These have now been published by HMRC. For further information
Latest advisory fuel rates for company car drivers
The amount that employees can be reimbursed for business travel in company cars changed from 1 September 2024.
See the gov.uk link for detailed information.
Advisory fuel rates for company cars are updated by HMRC on a quarterly basis due to fluctuations in fuel prices. The rates determine the amount that can be paid to an employee using a company car for business mileage, free from income tax. Note that the rates for diesel and petrol engines have decreased, whilst LPG rates have remained static.
Engine size Petrol LPG
1,400cc or less 13p 11p
1,401cc to 2,000cc 15p 13p
Over 2,000cc 24p 21p
Engine size Diesel
1,600cc or less 12p
1,601cc to 2,000cc 14p
Over 2,000cc 18p
The rate for fully electric vehicles is also reduced to 7p per mile. Hybrid cars are treated as either petrol or diesel cars for the purposes of advisory fuel rates.
Second Homes & Empty Properties
You’ll usually have to pay Council Tax on another property you own or rent, such as a holiday home. These properties are furnished and do not have anyone living in them as their main home. They are also known as ‘second homes’.
Your council can decide to give you a discount - it’s up to them how much you get. Contact your council to ask about a discount.
From 1 April 2025, you can be charged up to 2 times your normal Council Tax. Your council will decide whether the property is a ‘second home’ and whether to charge this additional tax. For more information on this and empty properties please visit.
2023/24 Personal Tax Works
As we are starting to get busy we would like to get your tax works completed "sooner rather than later" and this will help you:
Speed up any relevant refunds.
Know where you are tax-wise as soon as possible.
Budget and plan any HMRC payments due.
Avoid the queues later in the year as we approach HMRC deadlines.
Should you wish us to engage please contact the personal tax team.
ABMV Company Update
We have introduced the ability to ePay your invoice through the new ABMV website and/or via the ePay link on your individual invoice. Paying your invoice couldn’t be easier.
If you have any questions or would like to learn more about how we can help you with your accounting and business needs, please don’t hesitate to contact us. Our team of experts is always ready to assist you with any queries you may have.
