Autumn Budget 2024 – At a glance
TodiscussanyissuesoropportunitiesarisingfromtheAutumn Statement,emailenquiries@om.ukorspeaktoyour usual OldMillcontact.
CapitalGainsTax(CGT)
Non-residentialratestoincrease from30October2024.Thelowerlimit willincreasefrom10%to18%andthe upper limittoincreasefrom20%to 24%.
LifetimelimitonBusinessAsset DisposalRelief(BADR)willremainat £1million.TheBADRratewillremain at10%andthenincreaseto14%from 6April2025.Thiswillincreaseagain to18%from6 April2026.
Investorsreliefwillnowhavea lifetimelimitof£1million.
InheritanceTax(IHT)
Thenil-ratebandandtheresidence nil-ratebandthresholdare frozenuntil2030.
Pensionswillbeincludedinthe deathestateforIHTpurposesfrom6 April2027.
April2026-BusinessPropertyRelief (BPR) andAgriculturalPropertyRelief (APR) willhavealifetimelimitof£1 million.Thismeans100%reliefforthe first£1millionofcombinedassets and50%reliefthereafter.
Pensions
April2025–Statepensionwill increaseby4.1%.
MinimumWage
Minimumwageincreasingfrom £11.44 ->£12.21perhour.Riseof6.7%, worthup to£1,400for afull-time worker.
18–20nationalminimumwage will riseby£1.40perhour –working towardsasingleadultrate.
Interest
Increasinginterestrateonunpaid taxfromApril2025by2percentage points.
Thresholds
IncomeTaxandNationalInsurance thresholdswillremainfrozenuntil 2028/29.
BUSINESS
NationalInsurance
NationalInsurancecontributionsfor employerswillincreaseby1.2%to15% fromApril2025.
Therewillbeadropinthe threshold atwhichbusinessesstartpaying NationalInsurancefrom£9,100to £5,000.
Forsmallerbusinesses,the employmentallowancewillincrease from£5,000to£10,500.
BusinessRates
TheGovernmentannouncedits intentionstointroducepermanent lowerbusinessratesforretail, hospitalityandleisureproperties from2026-27.
FromApril2025businessrateswill receiveadiscountof40%uptoa maximumdiscountof£110k.
CarriedInterest
Taxpaidbyprivateequitymanagers onshareofprofitsfromsuccessful dealstorisefrom28%to32%from April2025.
ECONOMY
Inflation
TheOfficeforBudget Responsibility forecastsinflationtoaverage2.5%in 2024,increasingto2.6%in2025 beforefallinginthefollowingthree years.
DUTIES
FuelDuty
FuelDuty toremainfrozenatcurrent levelsforoneyeartosupport workingfamiliesandbusinesses.
AlcoholDuty
AlcoholDuty ondraftalcoholwillbe cutby1.7%onABVbelow8.5%.
AlcoholDuty ratesonnon-draught productswillincreaseinlinewithRPI fromFebruarynextyear.
StampDutyLandTax
AdditionalDwellingSupplement (ADS)rateswillincreasefrom 3%to 5%from31October2024.
OTHERPOINTS
PrivateSchoolFees
ThestandardrateofVATat20%will applytoprivateschoolfeesand boardingfrom1January 2025.
Domicile
April2025-thenon-domicileregime tobeabolished.Thiswillinsteadbe replacedbyasimplerresidence regime.
CarersAllowance
Widereligibilityonthecarers allowancebyincreasingthe maximumearningsthresholdfrom £151to£195aweek.
PublicSectorFunding
Anextra£22.6billionfor day-to-day spendingontheNHSinEngland,and a£3.1 billionboosttothe budgetfor investment.
£6.7billionallocatedfor education investmentnextyear.
