Autumn Budget 2024

Autumn Budget 2024 key measures.

Chancellor Rachel Reeves has finally unveiled the budget for 2024 as below.

Taxes in the Autumn Budget 2024

• Stamp Duty Land Tax – surcharge on 2nd homes from 31 October 2024 to increase to 5%.
• Right to Buy discounts to be reduced  – so buying a council house will cost more.
• The national minimum wage will rise in April 2025 by 6.7% to £12.21per hour, moving towards a single national rate in the future 18-20 year olds will increase to £10.00 per hour.
• Eligibility widened for Carers Allowance paid to full time carers, by increasing the maximum earnings threshold from £151 to £195 per week.
• Crackdown on umbrella companies and promoters of tax avoidance schemes.
• Fuel duty – frozen for next year.
• Income tax threshold remain frozen until 2028/29 when they will be increased in line with inflation.
• Employers’ NIC increases by 1.2% to 15% from April 2025.  And threshold decreased at which NIC becomes payable will fall steeply to £5,000 from £9,100.
• Employment Allowance to increase to £10,500 from £5,000.
• CGT from today (30 October) lower rate increase from the lower rate of 10% to 18% and higher rate from 20% to 24%. CGT on residential property remains unchanged.
• £1m Business Asset Disposal Relief to be retained, but with an increasing rate from April 2025.
• EIS kept until 2035.
• Inheritance tax – threshold frozen until 2030 – the first £325,000 can be inherited tax free that rises to £500,000 if the estate includes a residence passed to direct descendants. That also rises to £1m when a tax free allowance is passed to a surviving spouse or civil partner.
• IHT – from April 2027 inherited pension to be included in IHT.
• IHT Business Property Relief and Agricultural Business Relief to be kept but will be less generous in the future.
• Tobacco duty to increase with RPI
• Air Passenger Duty on Private Jets to rise by 50% – the equivalent of £450.00 per passenger for a private jet “to Hotel California….”
• Business rates – existing 40% on business rates for the retail, hospitality and leisure industries will continue in 2025/6 up to a cap of £110,000 per business.
• Corporate Tax Roadmap to be published today – Corporate Tax to be kept at 25%.
• Non Dom Regime to be abolished from April 2025 with new “residence” scheme (There will be exemptions and incentives to encourage foreign investment).
• Carried Interest rate to increase from 2025 to 32%.
• Energy Profits Levy to increase.
• Corporation Tax to stay at 25% on taxable profits over £250,000 until next election.
• VAT on Private Education Fees from January 2025 and business rates relief to be removed.
• Duty on non draught products will increase in line with RPI from February 2025. However, given 2/3 of alcoholic drinks are served on draught there will a 1.7% fall in alcohol duty, or essentially “1p off a pint of draught beer”.
• £2 cap on single bus fares to increase to £3 from January.

Spending in the Autumn Budget 2024

• Funding for those affected by the inflected blood scandal to the tune of £11.8bn.
• Funding for the Post Office horizon scandal to the tune of £1.8bn.
• Extra £22.6bn for the NHS.
• £6.7bn allocated for education investment with £1.4bn earmarked for rebuilding 500 schools.
• New path to spending 2.5% of GDP on defence at a future fiscal event. Defence spending to rise by £2.9bn in 2025 with an additional £3bn a year for Ukraine “for as long as it takes”.
• Affordable Homes Budget will receive a £500m boost.
• £70bn of investment through a National Wealth Fund.
• Creating Skills England.
• Crackdown on fraud in welfare claims, including direct access to bank accounts.
• New Get Britain Working white paper to tackle those who are economically inactive.
• Modernise HMRC with new technology and extra staff.
• Carers allowance to increase by largest amount since its inception.
• Household support scheme to be enhanced next year.
• State pension triple lock – 4.1% increase in 2025.
• Pension credit will also rise by 4.1%.
• HS2 will be extended to London Euston Station.
• Creation of a COVID Fraud Taskforce.
• An extra £500m in 2025 to repair pot holes.