13 Autumn Budget | 30 October 2024 Alternative finance Changes to certain alternative finance tax rules for capital gains tax, corporation tax, income tax and ATED from 30 October 2024 will ensure that the tax consequences are the same for those using alternative and conventional financing arrangements across the UK. Transfer pricing A consultation in spring 2025 will look at lowering the thresholds for exemption from transfer pricing rules for medium-sized businesses while retaining an exemption for small businesses. The government will consult further in spring 2025 on reforms to the rules on transfer pricing, permanent establishments and diverted profits tax. OECD Pillar 2 The government will introduce the undertaxed profits rule contained in the Pillar 2 rules. It will take effect for accounting periods beginning on or after 31 December 2024. Climate change levy (CCL) The main rates of CCL for gas, electricity and solid fuels will be uprated in line with RPI in 2026/27. The reduced rates will remain at an unchanged fixed percentage of the main rate. Value added tax (VAT) Registration and deregistration The VAT registration threshold will remain at £90,000 from 1 April 2025. The deregistration threshold will be £88,000. School fees All education services and vocational training provided by a private school or connected person in the UK for a charge will be subject to VAT at the standard rate of 20% from 1 January 2025, as previously announced. The charge will also apply to boarding services provided by private schools. Pre-payments of school or boarding services fees on or after 29 July 2024 relating to terms starting after 1 January 2025 will also be subject to VAT at the standard rate. The changes take effect from 30 October 2024. Think ahead Make sure you submit your VAT returns and pay any VAT by the due dates to avoid penalties and interest. If you can’t pay on time, contact HMRC before the due date to make a time to pay arrangement.
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