'Cryptoassets' (e.g. Bitcoin) are considered as UK situs assets for tax purposes. This means that the remittance basis will not apply and purchasing these investments could be considered as a deemed remittance if purchased with offshore funds. If you own Virtual Currency, raise this with your usual PJD Tax advisor.

More information can be found here.

The recent budget abolished the remittance basis charge and is set to be replaced with the Foreign Income and Gains (FIG) regime. The regime will take effect from the 6th April 2025 and states that individuals arriving in the UK after this date will not be subject to tax on their FIG for the first 4 years of residency, during this period the FIG earned can brought into the UK tax free – though this is yet to be finalized.

There are transitional rules that will take effect for those that straddle the 6th April 2025 and have not yet been in the UK for their first 4 years. If you have been in the UK longer than 4 years may also be possible to claim the Temporary Repatriation Facility (TRF) if you have claimed the remittance basis and are looking to remit this money into the UK.

These changes are new and complex, further details of this can be found at the links noted below.

• The New FIG Regime – What is it?
• The New FIG Regime – Recent Arrivals
• The New FIG Regime – Long Term Residents
• The New FIG Regime – Transitional Rules

It is best to consult your tax advisor if you think you will be affected.

In accordance with the recently published Spring budget FHLs have been abolished from 6th April 2025.

Income tax rates and bands for 2024/25 have remained the same. However, if you are a Scottish taxpayer from 6th April 2024, a new ‘advanced rate’ of Scottish income tax has been introduced for non-savings income between £75,001 and £125,140.

This has been reduced for the 2024/25 tax year to £500.

Annual Pension contributions for 2024/25 remains at £60,000. A tapering applies for those with adjusted income in excess of £260,000. Once this reaches £360,000 or more the maximum available to contribute is £10,000.

From 6th April 2024, the HICBC only applies where the higher earning parent has adjusted net income of £60,000 or more. The rate at which the HICBC works to claw back Child Benefit has been halved. For the current tax year onwards, 1% of Child Benefit will be repayable for every £200 of income over the £60,000 threshold, so full clawback won’t apply until the higher earning parent or guardian’s income reaches £80,000.

From 2024/25 onwards, the income threshold to complete a tax return for PAYE only taxpayers will be removed.

However, each case should be checked on its own merit as there could be other reasons you may need or want to file.

The annual exemption has been reduced to £3,000 for 2024/25.

From 30th October 2024, capital gains tax for basic rate taxpayers will increase from 10% to 18% and for higher rate taxpayers will increase from 20% to 24%.

Additionally, higher rate taxpayers who dispose of residential property will be liable to a 24% tax rate, a decrease from 28%.

If you are a non-domiciled individual in the UK and claim the remittance basis, you may be able to elect to receive tax relief for capital losses on disposals of any overseas assets. The default position is that remittance basis users cannot use their foreign capital losses in the UK but making a capital loss election would allow you to do so. There are strict rules as to the order in which these can be applied, timing is also important, and the election is irrevocable.

Consult your usual tax advisor for more details if you are considering making this election.

There are adverse tax consequences for UK taxpayers who are owners or beneficiaries of 529 plans. There can be a 'dry' tax charge on the underlying investments because these are not exempt from UK tax. If you think you may be affected by this, consult your regular PJD Tax advisor.

If you are a US taxpayer, it is good practice to pay any tax due with your UK returns before the end of the calendar year to ensure the foreign tax credits are available on your corresponding US return. E.g., any tax due with your 2024/25 UK return should be paid by 31st December 2025. If, during the calendar year, you also anticipate receipt of large investment income or capital gains then you should make your usual PJD Tax advisor aware who will be able to advise further.

You can find more information on this here.