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.