The Autumn Budget

As you may already be aware the Chancellor delivered the Autumn Budget this afternoon (30 October 2024).

The main points which will be relevant to our clients are listed below.

• National Living Wage (NLW) will rise by 6.7% to £12.21 per hour. 18 to 20 year old’s NLW will rise by 16.3% to £10 per hour. Apprentices NLW will rise to £7.55 per hour. These changes will come into effect from April 2025.
• Employer’s National Insurance (NI) contributions will increase by 1.21% to 15% from April 2025. The threshold at which businesses start paying NI on employee’s earnings will be lowered from £9,100 to £5,000.
• Employment allowance – which allows companies to reduce their NI liability – to increase from £5,000 to £10,500
• Tax paid by private equity managers on share of profits from successful deals 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
• Capital Gains Tax (CGT) – the lower rate will increase from 10% to 18% and the higher rate will increase from 20% to 24%.
• Inheritance Tax threshold freeze extended from 2028 to 2023. This means £325,000 will be inherited tax free, rising to £500,000 if the estate includes a residence passed to direct descendants, and £1million when a tax free allowance is passed to a surviving spouse or civil partner.

If you have any questions regarding how these announcements could affect you then please do not hesitate to contact our office.