June 2025

The notes and lectures up to the March 2025 exam are based on the Finance Act 2023, whereas the June 2025 exam will be based on the Finance Act 2024 and there have been some changes. For example, the dividend nil rate band is now £500, the cash basis is now the default method for calculating the trading profits of unincorporated businesses rather than the accruals basis and the annual exempt amount for capital gains is now £3,000.

The majority of the content hasn’t changed, but if you are going to use the notes and lectures, then proceed with caution!

Income Tax
Dividend nil rate band has been reduced from £1,000 to £500 (savings income nil rate bands unchanged)
Child benefit tax charge is now 1% for each £200 of income between £60,000 and £80,000.

National Insurance Contributions
Class 1 primary: main rate reduced to 8% between £12,570 and £50,270, 2% above this
Class 1 secondary: remains at 13.8% above £9,100
Class 1A: remains at 13.8%
Class 2: Generally, no longer payable. Voluntary class 2 contributions can be paid by those with profits below the small profits threshold to maintain their NIC contributions record.
Class 4: main rate reduced to 6% between £12,570 and £50,270, 2% above this

Employment income
Official rate of interest remains at 2.25%
Car benefit percentages unchanged, fixed amount to apply percentage to for car fuel remains at £27,800
Van benefit remains at £3,960, and £757 for fuel

Business Income Tax
The cash basis is now the default method for calculating trading profits of an unincorporated business

Capital Gains Tax
Annual exempt amount reduced from £6,000 to £3,000
Higher rate of tax for residential property disposals reduced from 28% to 24%.

VAT
The VAT registration threshold has increased to £90,000
The VAT deregistration threshold has increased to £88,000