On Wednesday 30th October, Chancellor Rachel Reeves delivered her Autumn Budget 2024.
We have created a summary of what we believe are the main points and announcements from the Chancellor’s Budget.
Download your copy below to read the full summary. Here are some key headline items:
- 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 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 just qualify for 50% relief. - Unused pension funds and 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relief for business rates will be withdrawn. - Subscription limits for individual savings accounts (ISAs), Junior ISAs and Lifetime ISAs will be frozen until April 2030.
Whilst every effort has been made to ensure the accuracy of this Autumn Budget 2024 summary and completeness of the information we give no guarantee, either express or implied.
The information contained in this document is based on Foster Denovo’s understanding at the time of writing of the current law and HM Revenue & Customs’ practice which may change. It does not constitute legal or tax advice and must not be treated as such.
This is an information document only. If you believe the content may have an impact on your financial planning, please contact your financial adviser.
The Financial Conduct Authority does not regulate taxation and trust advice.
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