The Fry Group
November 13, 2024
Autumn Budget Summary Article & Report
After weeks of speculation in the UK media on what fiscal measures would be taken, the Budget brought some clarity and certainty as Reeves presented her long-term plan for investment and growth.
If you are considering a move back to the UK and want a clear picture of the new tax landscape, or if you believe your tax position has changed with these new measures – our Autumn Budget summary is for you. To better understand your personal circumstances, please do get in touch with our team today.
BUDGET HIGHLIGHTS
- The main rate of class 1 employer National Insurance Contributions (NICs) will be increased from 13.8% to 15.0% with effect from 6 April 2025 and the secondary threshold at which employer NICs are payable will be reduced from £9,100 to £5,000.
- The main rates of Capital Gains Tax will increase with immediate effect to 18% for the lower main rate and 24% for higher and additional rate taxpayers. The rate for Business Asset Disposal Relief will rise to 14% for 2025/26 and 18% from 2026/27.
- Inheritance tax (IHT) business and agricultural 100% reliefs will be capped at a combined total of £1 million from April 2026. Above that, the rate of tax relief will be 50%. However, the cap will not apply to AIM shares which will only qualify for 50% relief.
- Unused pension funds and pension death benefits will form part of a person’s estate for IHT purposes from 6 April 2027.
- The additional SDLT rate for second homes and buy-to-let properties increases from 3% to 5% from 31 October 2024. The temporary increases in the 0% SDLT band for first time and other property buyers will end on 31 March 2025.
- VAT at 20% will be applied to private school education and boarding services from 1 January 2025. From 1 April 2025, charitable relief for English business rates will be withdrawn.
- Subscription limits for individual savings accounts (ISAs), Junior ISAs and Lifetime ISAs will be frozen until April 2030.
- The remittance basis of taxation will be abolished and a replacement scheme and set of measures implemented in its place.
- ‘Domicile’ will no longer bear relevance to an individual’s IHT position, with the Government legislating a residence based test
