Following Labour’s first Autumn Budget under Keir Starmer on Wednesday 30 October 2024, experts from across TC Group’s accountancy and business advisory teams are helping you to cut through the noise and focus on the changes most likely to impact you and your business.
Below, you’ll find the latest news, key dates to be aware of, changes in legislation and planning considerations, helping you stay ahead strategically.
We’re be bringing you a series of focused webinars, recordings, and blogs designed to support business growth plans, leverage tax saving initiatives, and safeguard your personal finances.
The largest piece of news was the announcement of Employers being hit with additional tax costs.
From April 2025, National Insurance for Employers will increase from 13.8% to 15%. Additionally, the rate at which businesses pay NI for each employee’s salary has reduced from £9,100 to £5,000. Resulting in an increased cost for business owners.
The National Living Wage will be increased from £11.44 to £12.21 an hour from April 2025.
For 18 to 20-year-olds, the minimum wage will rise from £8.60 to £10 as part of the long term plan to move towards a “single adult rate”.
For Apprentices, the minimum wage will rise from £6.40 to £7.55 an hour.
The rate of Stamp Duty Land Tax surcharge on second homes has increased from 3% to 5% from Thursday 31 October. For example, the SDLT on acquiring a second home for £300,000 will increase by £6,000.
For first time buyers, which currently enables a home to be bought for up to £425,000 without a SDLT charge, is due to expire on 31 March 2025. This hasn’t been extended.
Effective from today, Capital Gains Tax increases for both the lower rate and higher rate. Now increasing to 18% from 10% for the lower rate, and increasing to 24% from 20% for the higher rate. This means that CGT rates are now aligned with CGT rates on property.
For Business Asset Disposal Relief, this will remain at £1m for qualifying business owners. However, the tax rate will increase from the current 10% to the following:
14% from 6 April 2025.
18% from 6 April 2026.
No changes have been made to the basic, higher and additional Income Tax rate bands – remaining at 20%, 40% and 45%, respectively.
Dividend rates remain at 8.75%, 33.75% and 39.35% also.
The Budget also confirmed that the Personal Allowance threshold will remain frozen until 2027/28, staying at £12,570. Thereafter, Personal Allowance will rise with inflation from 2028/29.
The Corporation Tax rate’s remaining the same at 19% for profits made under £50,000 and 25% for profits made over £250,000.
The current Nil rate band for Inheritance Tax has been extended until 2030, with the rate remaining at £325,000.
Inherited pensions are now to be included in the Inheritance Tax net.
Business Insights