Autumn Budget 2024 – At a glance To discuss any issues or opportunities arising from the Autumn Statement, email enquiries@om.uk or speak to your usual Old Mill contact.
DUTIES
INDIVIDUAL Capital Gains Tax (CGT)
Thresholds
Fuel Duty
Non-residential rates to increase from 30 October 2024. The lower limit will increase from 10% to 18% and the upper limit to increase from 20% to 24%.
Income Tax and National Insurance thresholds will remain frozen until 2028/29.
Fuel Duty to remain frozen at current levels for one year to support working families and businesses.
BUSINESS
Alcohol Duty
Lifetime limit on Business Asset Disposal Relief (BADR) will remain at £1 million. The BADR rate will remain at 10% and then increase to 14% from 6 April 2025. This will increase again to 18% from 6 April 2026. Investors relief will now have a lifetime limit of £1 million.
National Insurance National Insurance contributions for employers will increase by 1.2% to 15% from April 2025.
Inheritance Tax (IHT)
There will be a drop in the threshold at which businesses start paying National Insurance from £9,100 to £5,000.
The nil-rate band and the residence nil-rate band threshold are frozen until 2030.
For smaller businesses, the employment allowance will increase from £5,000 to £10,500.
Pensions will be included in the death estate for IHT purposes from 6 April 2027.
Business Rates
April 2026 - Business Property Relief (BPR) and Agricultural Property Relief (APR) will have a lifetime limit of £1 million. This means 100% relief for the first £1 million of combined assets and 50% relief thereafter.
The Government announced its intentions to introduce permanent lower business rates for retail, hospitality and leisure properties from 2026-27. From April 2025 business rates will receive a discount of 40% up to a maximum discount of £110k.
Pensions
Carried Interest
April 2025 – State pension will increase by 4.1%.
Tax paid by private equity managers on share of profits from successful deals to rise from 28% to 32% from April 2025.
Minimum Wage Minimum wage increasing from £11.44 -> £12.21 per hour. Rise of 6.7%, worth up to £1,400 for a full-time worker. 18 – 20 national minimum wage will rise by £1.40 per hour – working towards a single adult rate. Interest Increasing interest rate on unpaid tax from April 2025 by 2 percentage points.
ECONOMY Inflation The Office for Budget Responsibility forecasts inflation to average 2.5% in 2024, increasing to 2.6% in 2025 before falling in the following three years.
Alcohol Duty on draft alcohol will be cut by 1.7% on ABV below 8.5%. Alcohol Duty rates on non-draught products will increase in line with RPI from February next year. Stamp Duty Land Tax Additional Dwelling Supplement (ADS) rates will increase from 3% to 5% from 31 October 2024.
OTHER POINTS Private School Fees The standard rate of VAT at 20% will apply to private school fees and boarding from 1 January 2025. Domicile April 2025 - the non-domicile regime to be abolished. This will instead be replaced by a simpler residence regime. Carers Allowance Wider eligibility on the carers allowance by increasing the maximum earnings threshold from £151 to £195 a week. Public Sector Funding An extra £22.6 billion for day-to-day spending on the NHS in England, and a £3.1 billion boost to the budget for investment. £6.7 billion allocated for education investment next year.
All details are correct at the date of publishing – Old Mill is a trading name of Old Mill Accountancy Limited. Registered in England Number 13566765. Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. Registered office Maltravers House, Petters Way, Yeovil, Somerset, BA20 1SH