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Allan Kirkman

Autumn Budget 2024

The Chancellor Rachel Reeves has delivered her first budget, announcing that this is a budget to fix the foundations of the economy and deliver change by protecting working people, fixing the NHS and rebuilding Britain.


Key Updates:


National Minimum Wage

  • National Living Wage the legal minimum for over-21s, will increase by 6.7% to £12.21, equivalent to £1,400 a year for an eligible full-time worker and

    Increase to £10.00 for 18-20 year olds, apprentice rates to increase to £7.00 from April 2025.

Employment Allowance

  • Employment allowance will be increased to £10.5k from April 2025, currently £5k.

Employers National Insurance

  • The rate of employer's National Insurance increases by 2% to 15% and the secondary threshold decreases to £5,000 from £9,100 from April 2025. To ensure that small and micro employers are not adversely affected the Employment Allowance will increase from £5,000 to £10,500.

Corporation Tax

  • Corporation tax will be maintained at 25% for duration of parliament.

Capital Gains Tax

  • The lower rate of capital gains tax (CGT) will be increased to 18%, and the higher rate will increase to 24% from today. CGT rates on residential property will be maintained.

Business Rates and VAT on Private School Fees

  • Business rates relief on private schools will be removed from April 2025, and 20% VAT will be added on school fees from 1 January 2025.

Personal Tax Thresholds

  • From 2028-29 personal tax thresholds will be uprated in line with inflation.

Inheritance Tax

  • Inheritance tax (IHT) threshold freeze will be extended until 2030. Inherited pensions will be brought into IHT from April 2027, with reforms on Agricultural Property Relief and Business Property Relief. From April 2026, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all, but for assets over £1m, inheritance tax will apply with 50% relief, at an effective rate of 20%.

Business Rates Relief

  • A 40% relief on business rates for retail leisure and hospitality businesses will be introduced. The small business rates multiplier will be frozen.

Stamp Duty

  • Effective from 31 Oct 2024, there will be an increase in the Stamp duty land tax surcharge on second homes by 2% to 5%.






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