News
Autumn Budget 2024 – What does this mean for you
In one of the longest ‘Budget’ speeches in memory, yesterday Chancellor Rachel Reeves gave the first Labour Budget speech for nearly 15 years.
Our summary of the key elements is set out below.
If you are curious to find out more, please get in touch to arrange a no-obligation financial consultation:
01603 789966
[email protected]
Capital Gains Tax (CGT)
- CGT Rate Increase: The lower CGT rate rises from 10% to 18% and the higher rate from 18% to 24% from 30th October 2024.
- Business Asset Relief Changes: Rates for Business Asset Disposal Relief and Investors’ Relief will gradually increase to 14% from 2025 and will match the lower CGT rate of 18% from April 2026.
Inheritance Tax (IHT)
- Unspent Pension Pots: From the 6th April 2027 most unused pension funds and death benefits will be included within the value of a person’s estate for IHT purposes.
- Agricultural and Business Property Relief: From April 2026, only the first £1 million will get 100% relief from IHT. Over £1 million, relief will be given at 50%, resulting in an effective rate of 20% tax.
Stamp Duty Land Tax (SDLT)
- Surcharge on Additional Properties: The SDLT surcharge on additional residential properties (e.g., second homes, buy-to-let properties)
will increase from 3% to 5% effective
31 October 2024.
Income Tax and National Insurance Contributions (NICs)
- Employer NICs: Employer NICs will increase from 13.8% to 15%, starting April 2025.
- NICs Threshold: The threshold at which employers start paying NICs will decrease from £9,096 to £5,000 per employee annually from April 2025.
- Threshold Uprating: Income tax and NIC thresholds for individuals will be uprated with inflation from April 2028. The government will maintain current income tax rates, with no increases to the basic, higher, or additional rates.
Vehicle Excise Duty (VED) for Electric Vehicles (EVs)
- Increased Incentives for EVs: Differentials in VED rates will be expanded between EVs, hybrids, and traditional combustion vehicles, encouraging EV purchases.
VAT on Private School Fees
- New VAT on Private Education: From January 2025 Private school fees will now incur VAT, with funds redirected to support public services.
With any new rules and legislation, the key points are often found in the detail. We will be in touch in due course to discuss things with you but if you would like to talk with your adviser now over how this may impact you please do not hesitate to contact them.
Talk to our team today. Our getting to know you meeting is provided with no cost or obligation to proceed.
01603 789966
[email protected]