The 2024 Autumn Budget has been announced by the Chancellor Rachel Reeves, bringing with it a range of measures that will shape financial planning for individuals and businesses alike.
With the economy facing ongoing challenges, this year’s budget aims to balance stability with growth-focused initiatives. From adjustments to tax rates to targeted sector support, there’s plenty to consider.
Here, we’ll break down the key changes, explain what they mean in practical terms, and outline some steps to help you prepare for the year ahead.
Employer NICs: Class 1 employer National Insurance contributions will increase from 13.8% to 15% starting 6 April 2025, with the NICs threshold dropping from £9,100 to £5,000.
Capital Gains Tax: Rates rise to 18% for basic rate taxpayers and 24% for higher rate taxpayers immediately, with business asset disposal relief increasing to 14% in 2025/26 and 18% in 2026/27.
Inheritance Tax Relief: From April 2026, business and agricultural reliefs will be capped at a combined total of £1 million, with a 50% relief rate above that. AIM shares will qualify for a 50% relief.
Pensions and IHT: Unused pension funds and death benefits will be part of estates for IHT from 6 April 2027.
Stamp Duty: The additional SDLT rate for second homes and buy-to-lets rises from 3% to 5% from 31 October 2024, with temporary 0% rates for first-time buyers ending 31 March 2025.
Private Education VAT: VAT at 20% will apply to private school fees from 1 January 2025, with charitable relief for business rates ending 1 April 2025.
ISA Limits: ISA, Junior ISA, and Lifetime ISA subscription limits will remain frozen until April 2030.
As always, the Budget publications included a wide range of detailed proposals with plenty to unpack. Read our Budget Summary to learn more about the key points most likely to impact you.
Download our 2024 Autumn Budget Summary here
Download our Tax Tables 2025/26 here
If you have any further questions about the Autumn Budget, please get in with your local office or email us on info@smh.group
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