With the recent unveiling of the UK Autumn Budget 2024, significant changes to personal and corporate tax regulations are set to reshape financial landscapes for individuals and businesses alike.
In his latest write-up, Peter Webb, our expert technical consultant delves into the nuanced details of these tax adjustments, providing clarity on what to expect moving forward. From adjustments to income tax thresholds to corporate tax rate modifications, understanding these changes is crucial to effective financial planning.
Join us as we explore the implications of this budget on your financial strategy and what it means for the future of taxation in the UK.
“Personal
- Rates of income tax and National Insurance (NI) paid by employees, and of VAT,
to remain unchanged - Income tax band thresholds remain frozen until 2028
- Basic rate capital gains tax on profits from selling shares to increase from from
10% to 18%, with the higher rate rising from 20% to 24% - Rates on profits from selling additional property unchanged
- Business Asset Disposal Relief tax rate to rise to 18% over the next 2 tax years
- Business Relief and Agricultural Property Relief will be limited to £1mn from April
2026 with 50% IHT relief above that limit - IHT relief on AIM shares to be limited to 50% (ie eective 20% IHT rate)
- Stamp duty surcharge, paid on second home purchases in England and Northern
Ireland, to go up from 3% to 5% - Point at which house buyers start paying stamp duty on a main home to drop
from £250,000 to £125,000 in April, reversing a previous tax cut - Threshold at which first-time buyers pay the tax will also drop back, from
£425,000 to £300,000 - 5p cut in fuel duty on petrol and diesel brought in by the Conservatives, due to
end in April 2025, kept for another year - Basic and new state pension payments to go up by 4.1% next year due to the
“triple lock”, more than working age benefits - Inheritance tax threshold freeze extended by further two years to 2030, with
unspent pension pots also subject to IHT from 2027
Business
- Companies to pay NI at 15% on salaries above £5,000 from April, up from 13.8%
on salaries above £9,100, raising an additional £25bn a year
- Employment allowance – which allows smaller companies to reduce their NIC
liability – to increase from £5,000 to £10,500
- Tax paid by private equity managers on Carried Interest to rise from up to 28% to
up to 32% from April
- Main rate of corporation tax, paid by businesses on taxable profits over
£250,000, to stay at 25% until next election”
We encourage our readers to engage with us on this topic. If you have questions about how these budget changes may affect your personal or corporate tax planning, or if you need expert advice tailored to your specific circumstances, please don’t hesitate to reach out. You can connect with Peter & I through the comments section below or contact us directly at peter.webb@sjpp.asia. Your financial well-being is our priority, and we’re here to help you navigate these changes effectively!
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