The Autumn BUDGET 2024

The Autumn Budget 2024 – The details you need to know!

The budget, which was presented by the Chancellor of the Exchequer Rachel Reeves.

EMPLOYMENT TAXES

NATIONAL LIVING AND MINIMUN WAGES

From 6 April 2025 the increases will be as follows:

• NLW for 21 years and over - £12.21 from £11.44.
• NMW for 18 - 20 year olds - £10 from £8.60.

NICs

Employers’ national insurance increased by 1.2% from 13.8% to 15% from 6 April 2025.

The threshold in which employers start to pay has gone down from £9,100 to £5,000.

Eligible small employers will benefit from an increase in the Employment allowance, going from £5,000 to £10,500 per tax year.

The £100,000 employers NIC threshold for eligibility will be removed from 6 April 2025 increasing its availability to a larger number of employers.

BUSINESS TAXES

CORPORATION TAX

No changes to the corporation tax rate- frozen at 25%.

£1m full expensing to remain.

INCOME TAXES

No changes to the rates of income taxes with the current rates frozen until April 2028. They will then be uprated inline with inflation from 2028-29.

Non-Domiciled tax basis for individuals will be abolished from 06 April 2025. A new residence based regime will take its place.

Carried interest- the rate of CGT on carried interest will increase to 32% from 06 April 2025 and then moving to the income tax framework from 06 April 2026.

CAPITAL GAINS TAX

Both the lower and higher rates of CGT will increase for disposals made on or after 30 October 2024 as follows:

• Lower –18% from 10%.
• Higher – 24% from 20%.

Business Asset Disposal Relief (BADR)

This will remain at 10% for gains up to £1m for this year, increasing to 14% from 6 April 2025 and then 18% from 6 April 2026.

INHERITANCE TAX

Agricultural property relief (APR) and Business property relief (BPR) will be reformed from 06 April 2026.

The first £1m of combined assets will still attract 100% relief reducing to 50% thereafter.

Relief for non-listed shares will also only attract 50% relief from 06 April 2026.

From April 2027- unspent pension pots will come into a person’s estate for IHT purposes.

OTHER

Stamp Duty Land Tax (SDLT)

From 31 October 2024, the surcharge on second homes will increase by 2% taking this to 5%.

Private Education

From 1 January 2025, VAT will be payable on private school fees at 20%.

Late Payment Charges

From 06 April 2025, the interest rate on outstanding HMRC tax liabilities will increase by 1.5 percentage points.

Useful links:

Published statement.

https://www.gov.uk/government/publications/autumn-budget-2024