15 Key Points from Autumn Budget 2024

Key points from the Autumn Budget 2024

1. National Minimum Wage National minimum wage will increase by 6.7% to £12.21 for a full-time worker. National Minimum Wage will rise for people aged between 18 and 20-years old from £8.60 to £10.
2. Employer's National Insurance Contributions (NIC) Employers NIC will be increased to 15% from April 2025. The secondary threshold will be reduced to £5k.
3. Employment Allowance Employment allowance will be increased to £10.5k from April 2025.
4. Capital Gains Tax (CGT) The lower rate of capital gains tax (CGT) will be increased to 18%, and the higher rate will increase to 24% from today. CGT rates on residential property will be maintained.
5. Business Asset Disposal Relief (BADR) The rate of CGT that applies to Business Asset Disposal Relief will rise to 14% in April 2025, and then to 18% in April 2026.
6. Employee Ownership Trusts Reform of the rules relating to sales of shares to employee ownership trusts in line with HMRC’s 2023 consultation to remove perceived abuses.
7. Business Rates A 40% relief on business rates for retail leisure and hospitality businesses will be introduced. The small business rates multiplier will be frozen.
8. Corporation Tax The cap on corporation tax will be maintained at 25% for duration of parliament. The capital expenditure scheme will be maintained.
9. UK Non-Domicile Regime From April 2025, the UK non-domicile regime will be abolished. A new residency scheme will be introduced as a replacement.
10. Carried Interest Capital Gains Tax rates will increase on carried interest to 32% from April 2025 with further reform planned from April 2026.
11. Stamp Duty Land Tax Effective from 31 Oct 2024, there will be an increase in the Stamp duty land tax surcharge on second homes by 2% to 5%.
12. Windfall Tax Windfall tax on oil and gas profits will increase to 38%, which will now expire in March 2030. 29% investment allowance will be removed.
13. VAT on Private Schools Business rates relief on private schools will be removed from April 2025, and 20% VAT on school fees from 1 January 2025.
14. Income Tax & NIC Thresholds No extension on the freeze of Income tax and NIC thresholds beyond the decisions of the previous government - from 2028-29 personal tax thresholds will be uprated in line with inflation.
15. Inheritance Tax Inheritance tax (IHT) threshold freeze will be extended until 2030. Inherited pensions will be brought into IHT from April 2027, with reforms on Agricultural Property Relief and Business Property Relief. From 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%.