As Rachel Reeves stood at the despatch box for 1 hour and 20 minutes to present the Autumn Budget 2024 she also claimed her place in history as the UK’s first female Chancellor. It was certainly an Autumn Budget of firsts.
We will be writing our full report overnight and expect to release this tomorrow. We would also like to invite you to join us at our free Budget Webinar on 13 November when our tax team will be taking a look at the highs and lows of the Autumn Budget and how these will impact upon your personal and business finances.
Here’s is our initial summary from today’s UK Autumn Budget 2024 in bullets:
Autumn Budget 2024 – Personal Taxes
- Income Tax & National Insurance: Freeze on thresholds will end in 2028, helping avoid wage-driven increases into higher tax bands.
- Capital Gains Tax: Tax on share profits to rise from a maximum of 20% to 24%, with rates on additional property sales remaining unchanged.
- Inheritance Tax: Threshold freeze extended from 2028 to 2030.
Autumn Budget 2024 – Business Taxes
- National Insurance: Firms to pay National Insurance on earnings over £5,000 (down from £9,100) from April, with the rate rising from 13.8% to 15%.
- Employment Allowance: Increase from £5,000 to £10,500, reducing employer NI liability.
- Private Equity: Tax on profits from successful deals to rise from up to 28% to up to 32%.
- Corporation Tax: Main rate for businesses with profits over £250,000 to stay at 25% until next election.
Autum Budget 2024 – Transport, Alcohol, Tobacco
- Bus Fares: £2 cap on single bus fares in England will increase to £3 in January.
- Fuel Duty: 5p cut on petrol and diesel extended for another year.
- HS2 Project: Funding commitment for tunneling to Euston station in London.
- Air Passenger Duty: Tax on private jet flights up by 50%.
- Tobacco Tax: Increase of 2% above inflation, and 10% for hand-rolling tobacco.
- Alcohol Duty: Higher RPI inflation for non-draught drinks, while draught drinks enjoy a 1.7% tax cut.
Housing
- Affordable Homes Budget: Boosted by £500 million, extending through 2026.
- Social Housing: Providers can increase rents above inflation with multi-year settlements.
- Stamp Duty: Surcharge for second homes in England and Northern Ireland rises from 3% to 5%.
Wages, Benefits, and Pensions
- Minimum Wage: Legal rate for over-21s will rise from £11.44 to £12.21 per hour in April; 18-20-year-olds will see an increase from £8.60 to £10.
- Carer’s Allowance: Increased maximum earnings threshold from £151 to £195 per week.
Autumn Budget 2024 – Economic Outlook
- Growth: UK economy projected to grow 1.1% this year, 2% next year, and 1.8% in 2026.
- Inflation: Expected to average 2.5% this year, 2.6% next year, then fall to 2.3% by 2026.
- Debt Definition: Broadened to include more financial assets, like future student loan repayments.
Government Spending and Public Services
- NHS: Extra £22.6 billion allocated for NHS daily expenses in England, plus a £3.1 billion investment boost.
- Education: £6.7 billion slated for education investment next year, with £1.4 billion for rebuilding over 500 schools.
Autumm Budget 2024 – Additional Measures
- Compensation Funds: £11.8 billion allocated for infected blood scandal victims and £1.8 billion for wrongly prosecuted Post Office sub-postmasters.
These bullets reflect the UK Government’s strategic focus on addressing cost of living, stimulating growth, and upholding public services.We expect to release our full Autumn Budget Report in PDF format on Thursday 31 October 2024. If you would like to join us at our free Budget highs and lows webinar on 13 November, please register here. During this session our tax team will be taking a look at how the Budget will impact upon your business and personal finances.
If you would like to speak to a member of our team regarding the Autumn 2024 Budget please contact us.
