The AUTUMN Budget 2024

Labour's first Budget in over a decade.

The much-anticipated Autumn Budget was finally delivered on the 30th October, in reality it wasn't quite the fireworks show the nation was expecting.

Chancellor Rachel Reeves faced the task: filling the "black hole" in public finances while keeping her party's ambitious manifesto pledges. The solution? A plan to raise £41 billion in taxes over the next five years.

Image Source: Sky News 2024

So, what does this mean for you and your finances?

• The main rate of class 1 employer national insurance contribution (NIC) will be increased from 13.8% to 15 from 6 April 2025%

• The secondary threshold at which employer NICs are payable will be reduced from £9,100 to £5,000.

• Main rates of capital gains tax increases with immediate effect to 18% for non and basic rate taxpayers and 24% for higher and additional rate taxpayers.

• Inheritance tax (IHT) business and agricultural reliefs will be capped at a total of £1 million from April 2026.

• Unused pension funds and death benefits will be included as part of an individual’s estate for IHT purposes from April2027.

• The additional SDLT charge for second homes and buy-to-let properties increases from £5 to 5% from 31 October 2024

• VAT of 20% will be applied to private school and boarding fees from 1 January 2025, while the charitable relief for English business rates will be withdrawn from 1 April 2025.

• ISAs, Junior ISAs and Lifetime ISA limits will remain frozen until April 2030.

• Fuel duty rates for 2025/26 will remain frozen and alcohol rates on certain draught beers will be cut.

As ever the Budget publications contained a wide range of detailed proposals and much to digest. Our Budget Summary highlights the key aspects that may affect you.