Autumn Budget 2024
On 30 October 2024, Chancellor Rachel Reeves presented her first budget to parliament. This was a budget intended to restore stability to our economy and to begin a decade of national renewal. Investment will be funded by revised debt rules to facilitate additional borrowing and a hefty £40 billion of tax rises.
Prior to the Budget, there was a huge amount of speculation and concern about the level of tax increases and where the increases would be applied. Surprisingly, there were few significant changes to many main taxes, i.e., no changes to corporation tax, income tax (including dividend taxes), pension contribution reliefs and personal national insurance.
The main change which has dominated the headlines has been to employers’ national insurance and the increase in the national minimum wage. The impact on our clients who employ staff will vary according to their circumstances, and these changes don’t occur until April 2025. Therefore, we have time to work with our clients to determine how this will affect their staff costs.
We have prepared a useful summary of the Autumn Budget, which includes more detail and also summarises the potential changes for you according to your circumstances:
Link to Beverston Autumn Budget Report
Headlines included:
• Immediate increases in capital gains tax (CGT) rates, with the lower rate rising from 10% to 18% and the higher rate from 20% to 24%.
• No changes to the 18% and 24% CGT rates for residential property disposals.
• The Business Asset Disposal Relief (BADR) rate will remain at 10% this year but will rise to 14% in April 2025 and 18% from April 2026.
• Immediate increases to Stamp Duty Land Tax, including for those buying residential property when they already own at least one dwelling.
• Confirmation that 20% VAT will apply to private school fees for the school term beginning in January 2025.
• Another change in approach for businesses utilising double-cab pick-up vehicles, coming into effect in April 2025.
• Plans to restrict inheritance tax agricultural and business property reliefs from April 2026.
• Plans to include an individual’s undrawn pension fund in their inheritance tax estate from April 2027.
In conclusion
As we approach 2025/26, we know several of our clients and contacts will be assessing the budget's impact on their affairs.
While some of our readers will benefit from the increases in public spending, for others, especially if you are an employer or business owner, it may be necessary to re-group and update your business plans for 2025 and onwards.
Remember, we are here to work alongside you to ensure your business and personal success. Please do get in touch if there is anything that you would like to discuss.