Autumn Budget 2024
In October 2024, Chancellor Rachel Reeves delivered the UK's Autumn Budget, introducing significant fiscal measures aimed at addressing economic challenges and investing in public services. Here is a concise breakdown of the key points.
Tax Increases
Employers' National Insurance Contributions will rise by 1.2 percentage points to 15 percent, effective from April 2025. Additionally, the threshold at which employers start paying National Insurance Contributions will decrease from £9,100 to £5,000.
Capital Gains Tax rates are set to increase immediately to 18 percent from 10 percent at the lower rate, and to 24 percent from 20 percent for higher earners, aligning them with property sale rates.
The inheritance tax threshold will be frozen until 2030. From April 2027, pensions will be included in the assets subject to inheritance tax. Additionally, starting April 2026, agricultural property will no longer be fully exempt. The first £1 million will remain exempt, with tax applied to the excess at half the standard rate.
Support for Workers
The National Minimum Wage is set to rise by 6.7 percent, bringing it to £12.21 per hour.
Carers will be able to earn up to £10,000 without losing their Carer's Allowance.
Public Services Investment
An additional £22.6 billion has been allocated to the National Health Service to enhance services and reduce waiting times.
The schools budget is set to increase over the next four years, with £1.4 billion earmarked for rebuilding more than 500 schools.
Transportation and Infrastructure
Fuel duty will remain frozen, providing relief to motorists amid fluctuating fuel prices.
The single bus fare cap will rise from £2 to £3 in England, effective January 2025.
Business and Economy
The corporation tax rate will remain at 25 percent, maintaining the current level for businesses.
The non-domiciled tax regime will end in 2025, aiming to ensure that individuals residing in the UK pay taxes accordingly.
This budget reflects a comprehensive approach to balancing fiscal responsibility with investments in critical public sectors, aiming to promote economic growth and social equity.