The Autumn Budget 2024 introduces a range of significant tax and financial adjustments aimed at addressing fiscal pressures and funding essential services. Here are the key changes, from national insurance increases to adjustments in inheritance tax and property levies, that will impact businesses, investors, and households in the years ahead:
- The main rate of class 1 employer national insurance contributions (NICs) will be increased from 13.8% to 15.0% with effect from 6 April 2025 and the secondary threshold at which employer NICs are payable will be reduced from £9,100 to £5,000.
- The main rates of capital gains tax will increase with immediate effect to 18% for non and basic rate taxpayers and 24% for higher and additional rate taxpayers. The rate for business asset disposal relief will rise to 14% for 2025/26 and 18% from 2026/27.
- Inheritance tax (IHT) business and agricultural 100% reliefs will be capped at a combined total of £1 million from April 2026. Above that, the rate of tax relief will be 50%. However, the cap will not apply to AIM shares which will only qualify for 50% relief.
- Unused pension funds and pension death benefits will form part of a person’s estate for IHT purposes from 6 April 2027.
- The additional SDLT rate for second homes and buy-to-let properties increases from 3% to 5% from 31 October 2024. The temporary increases in the 0% SDLT band for first time and other property buyers will end on 31 March 2025.
- VAT at 20% will be applied to private school education and boarding services from 1 January 2025. From 1 April 2025, charitable relief for English business rates will be withdrawn.
- Subscription limits for individual savings accounts (ISAs), Junior ISAs and Lifetime ISAs will be frozen until April 2030.
For a detailed breakdown of the Budget’s key components, you can view the full document here