Autumn Budget 2024

Labour’s first budget in 14 years was announced yesterday by the new chancellor Rachel Reeves, she has announced £40bn of tax rises and pledged to improve public services. Here are the key points.

Immediately

Capital Gains Tax rates for disposals on or after 30 October 2024 rise from 10% to 18% (basic rate taxpayers) and 20% to 24% (higher rate taxpayers); the higher rate for residential property remains 24%
Lifetime limit for gains qualifying for Investors’ Relief is reduced from £10 million to £1 million for disposals on or after 30 October 2024
Stamp Duty Land Tax surcharge for purchase of additional dwellings increased from 3% to 5% for purchases from 31 October 2024

From January 2025

Confirmation that VAT will apply to private school fees from 1 January 2025

From April 2025

Increase in rate of Employer National Insurance Contributions (ERNIC) from 13.8% to 15%, together with reduction of Secondary Threshold from £9,100 to £5,000
Increase in Employment Allowance for small businesses’ ERNIC from £5,000 to £10,500 for 2025/26
Certain ‘double cab pickup vans’ to be treated as cars for some tax purposes
Extension until March 2026 of the 100% first year allowance for qualifying expenditure on zero-emission cars and charging points for electric vehicles
Abolition of the remittance basis of taxation for foreign domiciled individuals, to be replaced by a ‘residence-based scheme’
CGT rate on disposals qualifying for Business Asset Disposal Relief increased from 10% to 14%
IHT Agricultural Property Relief to be extended to land managed under an environmental agreement with government or other approved bodies
40% business rates relief for retail, hospitality and leisure businesses for 2025-26 on values up to £110,000
Fuel duty remains frozen, and the temporary 5p cut announced in March 2024 will be extended to 22 March 2026

Click the link below to find out more on what the budget means for you:

https://treeaccountancy.co.uk/wp-content/uploads/2024/10/Autumn-Budget-2024.pdf