AUTUMN BUDGET 2024 – KEY POINTS
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- National Minimum Wage – increase to £12.21 per hour for over 21s and £10.00 per hour for 18-20 year olds from April 2025
- Carer’s Allowance – weekly earnings limit increased to 16 hours at National Living Wage
- State Pension – 4.1% increase from April 2025
- Fuel Duty – freeze on increasing fuel duty for a year
- National Insurance contributions – Employers national insurance to rise to 15% from April 2025. Threshold for NI contributions reduced from £9,100 to £5,000.
- Income tax/National Insurance – no change for employees’ rates. Income tax personal allowance to remain fixed until 2028/29
- Small companies Employment Allowance increased from £5,000 – £10,500
- Capital Gains Tax – increase on lower rate from 10% to 18% and on higher rate from 20% to 24%
- Inheritance tax – nil rate band and residence nil rate band frozen at £325,000 and £175,000 respectively until 2030
- Inherited pensions to form part of an estate for inheritance tax from 2027
- Business and Agricultural relief to be changed to a tax rate of 20% above the first million pounds
- Alternative Investment Market shares to be charged at a new inheritance tax rate of 20%
- Business Rates for retail, leisure and hospitality sectors to receive 40% relief
- Corporate tax rate to remain the same at 25%
- Non-domicile tax regime to be abolished from April 2025
- Stamp duty increase to 5% for purchase of second homes from 31 October 2024
- VAT on private school fees to be introduced from January 2025
- Draught beer duty cut by 1.7% equivalent to 1p a pint
- Air passenger duty to increase by up to £2 for each economy short-haul flight
If you have any concerns about how the Budget will affect you or if you need further advice please contact us at officemail@anthonyking.co.uk or 01268 240400
Written by Jane Cowdrey, Solicitor, Director & Head of the Wills & Probate Department.