The Autumn Budget – 30 October 2024
Following the budget announcement by the Chancellor at lunchtime today, the headlines are as follows:
Employment
National Minimum Wage rates will increase, with the living wage (for those 21 or over) by 6.7% to £12.21, from next April.
| 21 and over | 18 to 20 | Under 18 | Apprentice | |
| Current rate | £11.44 | £8.60 | £6.40 | £6.40 |
| April 2025 | £12.21 | £10.00 | £7.55 | £7.55 |
National Insurance
- National Insurance rates will not increase for employees
- Employer National Insurance will rise from the current rate 13.8% to 15% from April 2025, the level of secondary threshold will reduce from £9100 to £5000
- And the Employment Allowance will increase from £5k to £10.5k from April 2025
VAT will not be increased
Capital Gains Tax Increase
- Increase lower rate from 10% to 18%
- Increase higher rate from 20% to 24%
- The rates on residential property will remain at 18% and 24%
- The rate of Capital Gains Tax that applies to Business Asset Disposal Relief and Investors’ Relief is increasing to 14% for disposals made on or after 6 April 2025 and from 14% to 18% for disposals made on or after 6 April 2026
- The lifetime limit is staying at 1 million
Inheritance Tax
- IT Tax thresholds will be frozen for a further 2 years to 2030
- £325K can be inherited tax free, £500k when passed to direct descendants, £1m to surviving spouse/ civil partner
- This will bring inherited pensions into inheritance tax from April 2027
- April 2026, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all, but for assets over £1m, inheritance tax will apply with 50% relief, at an effective rate of 20%
Business rates
- 2 lower tax rates to be introduced for retail & leisure
- 40% relief for retail & leisure businesses from 2025/26 up to a cap of £100k
Stamp Duty
- Increase to 5%, from 31 October 2024 for those with second homes
Fuel Duty
- Freeze fuel duty next year
Electric Vehicle incentives
- Incentives will continue; it will also increase the differential between fully electric and other vehicles in the first rates of Vehicle Excise Duty beginning in April 2025
With these changes in rules and allowances please get in touch with us if you’d like to discuss how these changes affect you and your business.
