Tax Newsletter – December 2024

As we come to the end of 2024 we reflect on the year and the changes it has brought us.  We had the UK budget in October bringing significant proposed changes and the Scottish budget earlier this month with relatively few tax changes.  We have included our thoughts on both budgets below.  As we move into 2025, this will be a year for tax planning especially for those affected by the inheritance tax changes due in 2026 and 2027.  Please look out for our tax planning guide due out shortly.


The Scottish Budget was announced on 4 December this year and for the first time in a while, there were no new rates and no new bands.  We remain with the same six tax bands for the 2025/26 tax year.  There was a small change to the thresholds for the starter and basic rate bands reducing income tax of £14.51 for most Scottish taxpayers compared to 2024/25.  Full rates and bands are in our tax planning guide.

The main change to tax announced in the Scottish Budget is a change to Land and Buildings transaction tax (LBTT).  On second properties, the additional dwelling supplement (ADS) has risen from 6% to 8% for transactions on or after 5 December 2024.  This means that if you purchase a residential property when you already own one, in addition to the main rates of LBTT, you will pay an additional 8% on the value of the property.  There are some reliefs available, including around the main residence so if you may be subject to this, do take advice.  The multiple dwellings relief that applies to LBTT was not removed which was a surprise as this relief has been removed in England for Stamp duty land tax which is the equivalent to LBTT.


Further to the information we sent in the immediate aftermath of the UK budget back in October this year, there have been a lot of discussions especially in regard to the changes for inheritance tax (IHT) and capital gains tax (CGT).  We are expecting further details on these changes to be released by the Treasury early in 2025.  If you are concerned about your position, please get in touch with one of our specialists and have a look at our tax planning guide.  There is a lot that can be done to reduce your liability. 

We do recommend waiting until the consultation is released early in the new year before any significant planning is finalised but its never to early to start the discussions.


Please remember that the deadline for 2023/24 personal tax returns is 31 January 2025.  If you have not already completed your return, consider getting this off your list before Christmas!

If you would like your tax to be collected via your PAYE code (collected monthly with your employment or pension income) for those who are eligible, please note that your tax return must be submitted by 30 December.


As it is now the festive season, employers may wish to provide gifts to staff.  However, employers should be aware that the gifts could have tax implications for both the employee and employer.

Small gifts are exempt from tax and national insurance provided they meet the following criteria:

  • They cost £50 or less to provide.
  • It isn’t cash or a cash voucher.
  • It isn’t a reward in recognition of work performance.
  • It isn’t in the terms of their contract.

In addition, employers can provide non-cash long service awards to staff free of tax and national insurance if all the following conditions are met:

  • They have worked for the company for at least 20 years.
  • The award is worth less than £50 per year of employment.
  • The employee hasn’t received a long-service award in the last 10 years.

For example, a non-cash award with a value of up to £1,500 can be given to a member of staff for 30 years’ service.

Gifts which do not meet the above exemption criteria should be reported to HMRC via forms P11D, PAYE Settlement Agreement (PSA) or via payroll depending on the nature of the gift.


  1. Getting his welcome to HL photo taken
  2. Joined in our private client team call and heard all about our plans for the week.
  3. He knows all about gifting, so shared some fantastic tips on what we can be advising our clients on, especially on the run up to Christmas.
  4. Took some time to share the criteria for being put on Santa’s naughty or nice list.
  5. Learnt about capital gains tax so he knows whether Santa needs to consider these tax rules when selling an old sleigh.

From all of the tax team at Henderson Loggie, we wish you a Happy Christmas and best wishes for 2025.


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