The Chancellor, Rachel Reeves, delivered the Autumn budget to Parliament on 30 October 2024. We have listed some of the key initiatives below that may affect you or your business.

The following list is not extensive of all the announcements made but we hope it will provide an outline of the changes which may affect you.

Income Tax Allowances and Thresholds

The personal allowance will remain at the current level of £12,570. However, it was announced that the ongoing freeze will end in April 2028, with an expected rise in-line with inflation.

No changes were announced to the following income tax rates and thresholds which will come into force from 6 April 2025:

• Dividend allowance £500
• Savings allowance at Basic rate £1,000
• Savings allowance at Higher rate £500
• Pension contribution annual allowance £60,000
• Marriage allowance £1,260
• CGT annual exempt amount £3,000
• IHT annual exemption allowance £3,000

Increase to Employers National Insurance by 1.2%

From April 2025, employers National Insurance contributions will increase from 13.8% to 15%. This is coupled with a reduction in the National Insurance secondary threshold, the limit at which employers begin to pay NI, from £9,100 to £5,000.

However, the Employment allowance, the amount eligible employers can reduce their annual liability, will be raised to £10,500 from £5,000. There will also be a removal of the restriction to employers with over £100,000 NICs.

Corporation Tax

The main rate of Corporation tax for businesses with taxable profits over £250,000 will remain at 25%.

Allowances on vehicles

100% First year allowances for electric vehicles extended a further year to 5 April 2026.

Double cab pick-ups are no longer accepted as vans. Transitional arrangements for double cab pick-ups purchased, leased or ordered before 6 April 2025 will continue under the current treatment until disposal, lease expiry, or April 2029, whichever comes first.

Capital Gains tax

The main rates of capital gains tax have increased for disposals on or after 30 October 2024 to:

Basic rate taxpayers 18% (was 10%)

Higher rate taxpayers 24% (was 20%)

Trustees 24% (was 20%)

Rates on residential property gains (18% and 24%) remain unchanged.

Business Assets Disposal Relief

There will be an increase in the CGT rate payable on disposal of business assets from 10% to 14% starting in April 2025, followed by a further increase in April 2026 to 18%.

Inheritance tax rates

The freeze on Inheritance tax rates extended from 5 April 2028 to 5 April 2030, therefore:

Nil rate band £325,000

Residence nil rate band £175,000

Residence nil rate band taper amount £2 million

From 6 April 2027, unused pension funds from discretionary schemes will be treated as part of the deceased’s estate for IHT purposes.

Stamp Duty Land Tax

Additional dwellings surcharge increased from 3% to 5%, effective from 31 October 2024.

First-time buyers’ relief will revert to pre 23/09/2022 levels to:

0% on first £300,000

5% on next £200,00

No relief on properties worth over £500,000

Business rates

The current 75% discount will expire in April 2025 to be replaced by a 40% discount (maximum of £110k), with a plan to introduce permanently lower business rates for high-street retail, hospitality and leisure from 2026-27.

HMRC

The interest rate applied to tax that is overdue will increase in an effort to encourage prompt payment.

The full UK Autumn budget can be found on the GOV website.

We hope you’ve found this roundup helpful. Please feel free to contact us should you have any questions or would like to discuss the above in more detail.