Autumn Budget 2024
Capital gains tax
- Capital gains tax on profits from the sale of shares has increased from the lower rate of 10% to 18% and the higher rate of 20% to 24%, on sales on or after 30 October 2024.
- The rate of tax on the profits from selling additional properties remains unchanged.
Inheritance tax
- The inheritance tax nil-rate band (£325,000) and residence nil-rate band (£175,000) threshold freezes will be extended by two years to 5 April 2030
- From 6 April 2027 unused pension funds and death benefits payable from a pension will be brought into a person’s estate for inheritance tax purposes
Income tax
- Rates of Income Tax and National insurance paid by employees remain the same.
- Income tax and National Insurance thresholds will rise with inflation from 2028-29
- From 6 April 2025 the interest payable on unpaid tax will increase by 1.5% percentage points
- The furnished holiday lettings regime will be abolished from 6 April 2025.
- From 6 April 2025, the non-dom regime will be abolished and replaced with a new tax regime based on residence.
Other changes for individuals
- The stamp duty land tax (SDLT) surcharge for additional properties will be increased from 3% to 5% above the standard residential rates from 31 October
- VAT will apply to private school fees from 1 January 2025
- Basic and new state pension payments to go up by 4.1% next year
Businesses
- The rates of Class 1, Class 1A and Class 1B employer National Insurance will increase from 13.8% to 15% from 6 April 2025
- The National Insurance secondary threshold will reduce from £9,100 to £5,000 from 6 April 2025 until 5 April 2028
- The National Insurance employment allowance will increase from £5,000 to £10,500 from 6 April 2025
- Main rate of corporation tax, paid by businesses on taxable profits over £250,000, to stay at 25% until next election
- The 100% first-year allowances for zero-emission cars and electric vehicle charge-points are being extended until 31 March 2026 for corporation tax and 5 April 2026 for income tax
- The van benefit charge and the car and van fuel benefit charges will be increased from April 2025 using the September 2024 Consumer Prices Index
- The single rate of SDLT payable by companies and non-natural persons acquiring dwellings for more than £500,000, will be increased from 15% to 17% from 31 October 2024
- The Business Asset Disposal Relief (BADR) and Investors’ Relief (IR) rate will increase from 10% to 14% from 6 April 2025 and to 18% from 6 April 2026.
- Legal minimum wage for over-21s to rise from £11.44 to £12.21 per hour from April 2025
- Rate for 18 to 20-year-olds to go up from £8.60 to £10
Other points
- HMRC to recruit 5,000 additional compliance staff by 2029-30
- HMRC to recruit 1,800 additional debt management staff
Disclaimer: This newsletter covers the key points from Budget 2024. It is not exhaustive and should not be read as a full fiscal summary. The content displayed is correct as of 30 October 2024. We cannot take responsibility for any action taken or not taken from this document alone. Please contact us for personalised advice.