AUTUMN BUGET SUMMERY 2024

Get the key takeaways from the Autumn Budget

Explore the overview summary of the key points covered which affect individuals and/or their business(es):-

 

Personal Taxes

  • Rates of income tax and National Insurance (NI) paid by employees remain unchanged.
  • Income tax band thresholds to rise in line with inflation after 2028.
  • The basic rate of Capital Gains Tax will increase from 10% to 18%, with the higher rate rising from 20% to 24% with immediate effect.
  • Business asset disposal relief (BADR) lifetime limit to remain at £1m for the foreseeable future, and the rate to stay at 10% until 5th April 2025. The rate will increase to 14% from 6th April 2025 and 18% from 6th April 2026.
  • The investors’ relief lifetime limit will be reduced to £1m from £10m, and the rates will follow BADR.
  • Capital Gains Tax rates on profits from selling additional residential property to remain unchanged.
  • The Inheritance Tax threshold freeze has been extended by two more years to 2030, and unspent pension pots will also be subject to inheritance tax from 2027.
  • Pension lifetime limit and tax-free lump sums remain unchanged.
  • From 6th April 2025, Agricultural Property Relief (APR) and Business Property Relief (BPR) will have a joint death estate limit of £1m. Any amounts over £1m are to be taxed at a lower inheritance tax rate of 20%.
  • Exemptions from inheriting farmland will be less generous from 2026.

 

Stamp Duty Land Taxes 

Residential properties – from 31st March 2025, the charges will work out as follows:-

  • 0% up to £125,000 (0% up to £300,000 for first-time buyers only)
  • 2% above £125,000 and up to £250,000
  • 5% above £250,000 and up to £925,000
  • 10% above £925,000 and up to £1,500,000
  • 12% above £1,500,000

Second homes and buy-to-let properties

  • From 31st October 2024, additional stamp duty will increase from 3% to 5%.

 

Business Taxes

  • From April 2025, firms will pay National Insurance on employees’ earnings above £5,000pa, down from £9,100pa currently.
  • Employers’ national insurance contributions will increase from 13.8% to 15% starting April 2025.
  • Employment Allowance will increase from £5,000 to £10,500 in April 2025.
  • From April 2025, the tax paid by private equity managers on their share of profits from successful deals will rise from 28% to 32%.
  • The primary rate of Corporation Tax, paid by businesses on taxable profits over £250,000, will remain at 25% until the next election.

If you wish to discuss any of the above in more detail, please contact Kristian on 01484 515544 or email him at kristan@crowther.accountants

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