We have pleasure in attaching our summary of the key announcements in the 2024 Autumn Budget.
The main elements include:
- The main rate of class 1 employer national insurance contributions (NICs) will be increased from 13.8% to 15% from 6 April 2025.
- The secondary threshold at which employer NICs are payable will be reduced from £9,100 to £5,000.
- The employment allowance will increase from £5,000 to £10,500.
- Main rates of capital gains tax increase with immediate effect to 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers.
- Business Asset Disposal Relief will continue to tax applicable gains at 10% in this tax year increasing to 14% in 2025/26 and 18% in 2026/27.
- Inheritance tax (IHT) business and agricultural reliefs will be capped at a total of £1 million from April 2026 with assets above that attracting relief at 50%.
- Unused pension funds and death benefits will be included as part of an individual’s estate for IHT purposes from April 2027.
- The additional SDLT charge for second homes and buy-to-let properties increases from 3% to 5% from 31 October 2024.
- VAT of 20% will be applied to private school and boarding fees from 1 January 2025 (including prepayments made after 29 July 2024), while the charitable relief for English business rates will be withdrawn from 1 April 2025.
- ISAs, Junior ISAs and Lifetime ISA limits will remain frozen until April 2030.
- Fuel duty rates for 2025/26 will remain frozen and alcohol rates on certain draught beers will be cut.
We trust that you find the enclosed Budget Summary useful and that it is a helpful basis for a discussion with us about your financial future.