We’re heading into the final stretch of the 2024-25 tax year, and some significant tax changes are on the horizon from 6 April 2025. That means now is the time to get ahead of the game, make the most of available reliefs, and avoid any nasty surprises.
Here’s the deal: tax planning isn’t just for accountants or finance geeks. Whether you run a business, invest in property, or just want to keep more of your hard-earned cash, these tax tips could save you serious money.
Key Tax Changes & What You Can Do About Them
1. Furnished Holiday Lettings: The Party’s Over
Right now, if you own a furnished holiday let (FHL), you get some pretty sweet tax perks – but from 6 April 2025, those benefits are history. No more full relief on finance costs, no more capital allowances on furniture, and no more treating profits as ‘earned income’ for pensions.
What you can do:
✔ Thinking of selling? Do it before 6 April 2025 to lock in Business Asset Disposal Relief (BADR) and a 10% capital gains tax rate instead of 24%.
✔ Can’t sell yet? Stop renting it out as an FHL before April 2025 – that way, you’ve still got three years to sell while keeping BADR.
✔ Got losses? Use them wisely. From April 2025, FHL losses roll into general rental losses, which could work in your favor.
2. Non-Dom Tax Perks: Gone for Good
The UK’s special tax rules for non-doms? Dead from April 2025. If you’re a UK resident but not UK-domiciled, this could massively impact your tax bill.
What to do now:
✔ Act fast. If you’re affected, get a game plan in place ASAP – don’t wait until next April.
✔ Got assets abroad? This could get tricky, so it’s time to chat with an expert (yes, really).
3. National Insurance: Fill in Any Gaps Before It’s Too Late
Want the full State Pension? You need around 35 years of National Insurance contributions (NICs). Got gaps? You can usually pay for the past six years – but there’s a special deadline approaching.
What to do:
✔ Check your NIC record online now – don’t assume you’re covered.
✔ If you’ve got gaps between 2006 and 2018, you’ve got until 5 April 2025 to fix them – after that, the door slams shut.
4. Double Cab Pick-Ups: The Tax Loophole is Closing
Love your double cab pick-up? From April 2025, it’ll be taxed like a car rather than a van – meaning higher costs for both you and your business.
What you can do:
✔ Buy, lease, or order one before 6 April 2025 to lock in the old (better) tax treatment until 2029.
✔ If you’re using one for business, brace yourself for higher benefit-in-kind charges and reduced capital allowances.
5. Business Asset Disposal Relief (BADR): Use It Before You Lose It
BADR lets you sell your business (or shares in it) and pay just 10% CGT – but from April 2025, that rate jumps to 14%, and in 2026, it goes up to 18%.
What to do:
✔ If you’re planning to sell, do it before 6 April 2025 to lock in the 10% rate.
✔ If you miss that window, try to sell before April 2026 to avoid the 18% rate.
6. Agricultural Property Relief: Good News for Landowners
From April 2025, if your land is managed under an environmental agreement, you might now qualify for Agricultural Property Relief (APR).
✔ If you’ve been holding off on joining environmental schemes for tax reasons, now’s the time to reconsider.
✔ Not all environmental schemes qualify – check the details first.
7. Salary Sacrifice: A Smart Move for Employers
National Insurance costs for employers are going up from April 2025. The threshold for paying NICs drops from £9,100 to £5,000, and the NIC rate rises to 15%.
What to do:
✔ Consider salary sacrifice schemes – these cut employer NIC costs while giving employees tax perks.
✔ Offering benefits like pension contributions, cycle-to-work schemes, and EV leases can help offset these rising costs.
8. Corporate Tax: Time to Rethink Investment Strategies
The government’s corporate tax roadmap confirms that full expensing and key capital allowances are sticking around until at least 2029.
✔ If you were hesitating on capital investment, this stability might be the green light you were waiting for.
✔ Electric vehicles? First-year tax relief for EVs and charging points is extended to 2026 – but act fast before the window closes.
9. Visual Effects Tax Relief: Big Win for Film & TV
From April 2025, UK-based visual effects (VFX) work gets an enhanced 39% tax credit. If your company is in film or TV production, this could be a game-changer.
✔ If your project has heavy VFX costs, this tax break could save you a fortune.
10. HMRC Late Payment Interest: The Cost of Being Late Just Got Higher
From April 2025, HMRC is hiking the interest rate on late tax payments from base rate +2.5% to base rate +4%. In real terms, that means paying late will cost you a lot more.
What to do:
✔ Pay your tax on time – or risk getting hit with brutal interest charges.
✔ If you can’t pay, talk to HMRC early about a payment plan to avoid penalties.
Final Thought: Don’t Leave It Until the Last Minute
Look, we get it – tax isn’t the most exciting thing on your to-do list. But with so many changes coming, a little planning now could save you thousands.
Need help figuring out your next move? Talk to your accountant, run the numbers, and act before 6 April 2025. Future-you will thank you.
