Autumn Budget 2024 Update - McColes & Co (Herts) Ltd

Budget Update Autumn 2024

The government will increase personal tax thresholds on income tax and national insurance in line with inflation from 2028-29.

Increasing the Employer NICs (ER NICs) rate from 13.8% to 15%.
Reducing the Secondary Threshold (ST) from £9,100 annual equivalent to £5,000 annual equivalent.
Increasing the Employment Allowance (EA) from £5,000 to £10,500.
These measures are from 6th April 2025.

There will be an increase to the Capital Gains Tax (CGT) main rates from 10% to 18% and from 20% to 24% for the lower and higher rate respectively, to be aligned with the existing rates on residential property.
This measure will be effective from budget day, 30 October 2024.
The Business Asset Disposal Relief (BADR) and Investors’ Relief (IR) rate will increase from 10% to 14% from 6 April 2025 and to 18% from 6 April 2026.

The government will increase the late payment interest ratecharged by HMRC on unpaid tax liabilities by 1.5% to Bank Rate plus 4%. This measure will be effective from 6 April 2025.

Fully electric and zero emission vehicle rates will increase by 2% per annum across 2028-29 and 2029-30.
Rates for cars with emissions of 1-50g/km of CO2 will increase to 18% in 2028-29 and 19% in 2029-30.
Rates for all other emission bands will increase by 1% per annum to maximum of 38% for 2028-29 and 39% for 2029-30.

The remittance basis of taxation for non-UK domiciled individuals is being abolished and replaced with a simpler residence-based regime.
Individuals opting into the regime will not pay UK tax on foreign income and gains (FIG) for the first four years of tax residence, provided they have been non-tax resident for the previous 10 years.

In addition to existing nil-rate bands and exemptions, the current 100% rates of Agricultural Property Relief (APR) and Business Property Relief (BPR) will continue for the first £1 million of combined agricultural and business property. The rate of relief will be 50% thereafter. This will be effective from 6th April 2026.
Unused pension funds and death benefits payable from a pension will be brought into a person’s estate for Inheritance Tax (IHT) purposes from 6th April 2027.

The standard rate of VAT (20%) will apply to education and boarding services provided by private schools from 1 January 2025.

There will be an increase to the Higher Rates for Additional Dwellings surcharge on Stamp Duty Land Tax (SDLT) from 3% to 5%.
It will also increase the single rate of SDLT that is charged on the purchase of dwellings costing more than £500,000 by corporate bodies from 15% to 17%. This will be effective from 31 October 2024.