Autumn 2024 – Budget Summary
Posted 30/10/2024
We have compiled a summary of the budget announcements made today.
A more detailed analysis will follow.
National Living/Minimum Wage
The National Living Wage for people aged 21 or older will rise by 6.7% to £12.21 from next April.
In addition, the National Minimum Wage will rise for people aged between 18 and 20 years old from £8.60 to £10.00
National Insurance Contributions
No increase in employee National Insurance Contributions (NIC), but employers NICs to increase by 1.2% to 15% from April 2025.
In addition, the threshold at which businesses start paying NICs on workers earning to be reduced to £5,000 from £9,100
The National Insurance employment allowance will be increased to £10,500 from £5,000.
Capital Gains Tax
Capital Gains Tax lower rate increased from 10% to 18% and higher rate from 20% to 24%.
Business asset disposal relief to be increased from 10% to 14% from April 2025 & then to 18% from April 2026.
Inheritance Tax
The Inheritance Tax thresholds are to be frozen for a further 2 years to 2030.
Inherited pension to be bought into account from April 2025
In relation to agricultural property relief & business property relief, from April 2026, in addition to existing nil-rate bands & exemptions, the 100% rate of relief will continue for the first £1million. & will be 50% thereafter.
Domicile
Domicile to be removed from tax system, instead taxation to be based on residence from April 2025
Corporation tax
Corporation Tax rates frozen for the duration of parliament.
Other measures
Full expensing, £1m annual investment allowance & current R&D rates maintained.
Higher rate of Stamp Duty Land Tax (second homes) up 2% & 5% from tomorrow.
VAT will be imposed on private school fees.
Business rates – 40% relief for retail, hospitality & leisure with £110k cap per business.
Personal tax thresholds are increasing in line with inflation, but not until 28/29.
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