Autumn Budget 2024
Please find a summary of the announcements from the Autumn Budget, where we highlight the key talking points.
Non- domiciled tax regime/system
Will be abolished.
Tax concept of domicile to be removed from April 2025.
Introduce a residents-based scheme with international arrangements for those coming to the UK on a temporary basis.
Inheritance tax (IHT)
Current thresholds extended further to 2030.
From April 2026 the first £1 million of combined business and agricultural property relief will continue to attract no IHT and will receive 50% releif thereafter (in effect a 20% IHT rate).
The 50% business property rate of relief will also be avaliable in all circumstances for shares designated as not listed on the markets of a recognised stock exchange.
From April 2027 unspent pension pots will be brought into the scope of IHT.
National Insurance Contributions (NIC) from April 2025
Employers NIC to rise to 15%.
The secondary threshold at which employers start paying NIC for employees to be reduced to £5,000 (from £9,100).
Employment allowance increasing to £10,500 (gives employers a discount up to this amount on their employers NIC).
Business rates for retail, hospitality and leisure properties
40% relief up to a cap of £110,000 per business when the temporary business rates relief ends next year.
From 2026/27 introduction of permanent lower business rates.
Capital Gains Tax (CGT)
From 31st October the lower rate of CGT will be increased to 18% and the higher rate to 24% (from 10% and 20%).
The current 10% Business Asset Disposal and Investors Relief will remain until April 2025 when it will be increased to 14% and then 18% from April 2026.
18% and 24% rates remain for the sale of residential properties (not your main residence).
Carried interest (profits from private equity funds) rate to be increased to 32% (from 28%). There will be further reforms from April 2026.
Other
From 31st October Stamp Duty Land Tax for the purchases of second homes, buy-to-let residential properties, and companies purchasing residential property will be 5% (from 3%).
Confirmed the VAT on private school fees will be from January 2025.
From February 2025 Alcohol duty rates on non draught alcohol products will increase in line with RPI inflation. For draught products, there is to be a one-pence duty reduction.
From April 2025 the National Living Wage will increase to £12.21 and to £10 for 18 to 20-year-olds.
A new Vaping products duty will be introduced from 1st October 2026 at a flat rate of £2.20 per 10ml vaping liquid.
Electric vehicles current incentives in the company car tax regime are to be extended for a further year.
Fuel duty frozen.
The state pension will rise by 4.1% in April 2025.
From April 2028 personal tax allowances (currently remaining the same) will be uprated in line with inflation.
