Autumn Budget 2024 – Summary

Chancellor Rachel Reeves delivered Labour’s first budget since 2010, following the party’s return to power after the July general election. She announced £40bn in tax increases to fund the NHS and other public services. Here’s a summary of the key measures which may affect you and/or your business

Personal Taxes:

• Income tax rates, National Insurance (NI) contributions for employees, and VAT will remain unchanged.
• Income tax thresholds will rise with inflation after 2028, preventing more people from being pushed into higher bands as wages increase.
• The basic rate of capital gains tax on profits from selling shares will rise from 10% to 18%, while the higher rate will increase from 20% to 24%.
• Capital gains tax rates on profits from selling additional properties will remain unchanged.
• The freeze on inheritance tax thresholds will be extended until 2030, and unspent pension pots will also be subject to inheritance tax from 2027.
• Inheritance exemptions for farmland will be less generous from 2026, please contact us for further information.

Business Taxes:

• Companies will now pay 15% NI on salaries above £5,000, up from 13.8% on salaries above £9,100, raising an additional £25bn per year.
• The employment allowance, which helps smaller companies reduce their NI liabilities, will increase from £5,000 to £10,500.
• Double-cab pickups will be treated as cars for tax purposes from April 2025, which is likely to result in reduced capital allowances claims and increased ‘Benefit in Kind’ charges
• The main rate of corporation tax, on businesses with profits over £250,000, will remain at 25% until the next election.

Wages, Benefits, and Pensions:

• The minimum wage for over-21s will rise from £11.44 to £12.21 per hour from April, and for 18-20-year-olds, it will rise from £8.60 to £10.
• Basic and new state pensions will rise by 4.1% next year due to the “triple lock,” more than working-age benefits.
• Eligibility for carer’s allowance will expand by increasing the maximum weekly earnings threshold from £151 to £195.