2024 Autumn Budget Tax Overview
The Chancellor Rachel Reeves delivered her first budget on Wednesday 30th October, focusing on driving growth and restoring economic stability through investment.
Our expert team has analysed the Autumn Statement for businesses, highlighting key tax changes that will directly impact UK companies and noting the effects these adjustments may have on individuals.
Key Tax Changes from the Autumn Budget
Tax increases of around £40bn have been announced, alongside highly publicised measures involving minimum wage, fuel duty and spending for public services.
Here are some of the measures that could directly impact you:
National Insurance Contributions (NIC) Increase
An NIC change was announced with employers’ national insurance contributions increasing by 1.2% from April 2025 to 15%.
Alongside this, the point at which employers will start paying national insurance will decrease from the current £9,100 a year to a new figure of £5,000 a year.
Capital Gains Tax Changes
Starting on 31st October 2024, capital gains tax (CGT) rates will increase on disposals, with the basic rate rising from 10% to 18% and the higher rate from 20% to 24%.
The rates of capital gains for residential property disposals remain at 18% and 24%. Additionally, trustee and personal representative rates will increase from 20% to 24%.
These CGT changes align the rates for all assets, removing the need to differentiate between residential and other disposals.
There are also Business Asset Disposal Relief changes, with increases on disposals, rising 14% in April 2025 and again to 18% the following year.
Inheritance Tax Changes
The current Inheritance Tax (IHT) threshold freeze of £325k (£500K if including a residence being left to a direct descendant) has been extended until 2030.
Business and agricultural assets will be free from IHT for the first £1 million, with any values more than this only benefitting from 50% relief.
The Chancellor also announced plans to bring unused pension funds within the remit of inheritance tax from April 2027. This will likely mean many more estates that would not pay inheritance tax currently will pay it in the future.
Stamp Duty Land Tax Changes (SDLT)
Starting 31 October 2024, those purchasing additional residential properties, such as a second home or buy-to-let property, in England and Northern Ireland will pay a Stamp Duty Land Tax surcharge of 5% above the standard rate, an increase from the previous 3%.
This surcharge typically applies on the transaction’s completion date.
Want to know more about how the Autumn budget could impact you?
Our team of chartered accountants in Aldridge can guide you through their impact on your personal and business finances, offering tailored support through our range of taxation services, including personal tax advisory services, corporate tax planning, and more.
Alternatively, you can download our comprehensive Autumn Budget summary to see the full list of changes brought about by the Chancellor and how these could affect you and your business in more detail.
