Autumn Budget 2024 – Key takeaways
Personal taxes
- Rates of income tax and National Insurance (NI) paid by employees, and of VAT, to remain unchanged
- Income tax band thresholds to rise in line with inflation after 2028, preventing more people being dragged into higher bands as wages rise
- Basic rate capital gains tax on profits from selling shares to increase from from 10% to 18%, with the higher rate rising from 20% to 24%
- Rates on profits from selling additional property unchanged
- Inheritance tax threshold freeze extended by further two years to 2030, with unspent pension pots also subject to the tax from 2027
- Exemptions when inheriting farmland to be made less generous from 2026
Business taxes
- Companies to pay NI at 15% on salaries above £5,000 from April, up from 13.8% on salaries above £9,100, raising an additional £25bn a year
- Employment allowance - which allows smaller companies to reduce their NI liability - to increase from £5,000 to £10,500
- Tax paid by private equity managers on share of profits from successful deals to rise from up to 28% to up to 32% from April
- Main rate of corporation tax, paid by businesses on taxable profits over £250,000, to stay at 25% until next election
Wages, benefits and pensions
- Legal minimum wage for over-21s to rise from £11.44 to £12.21 per hour from April
- Rate for 18 to 20-year-olds to go up from £8.60 to £10, as part of a long-term plan to move towards a "single adult rate"
- Basic and new state pension payments to go up by 4.1% next year due to the "triple lock", more than working age benefits
- Eligibility widened for the allowance paid to full-time carers, by increasing the maximum earnings threshold from £151 to £195 a week.
Feel free to get in touch if you or your business is affected by any of above changes.
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