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Professional Renaissance

Autumn Budget 2024



Below are details of some of the key announcements from the autumn budget.


The Chancellor’s budget introduced significant tax rises, increased support for low-income households, and several changes targeting businesses, the environment, and social benefits.


Key measures include:


  • Taxation and Business: £40bn in tax rises overall, with capital gains tax increasing to 18% at the lower rate and 24% at the higher rate. Non-dom tax status will be abolished from April 2025, replaced by a residence-based regime. Corporation tax remains unchanged, while business rates reliefs for retail, hospitality, and leisure will offer 40% relief.


  • National Insurance: Employers’ NI contributions will rise by 1.2 percentage points to 15%, with the threshold for employer contributions lowered from £9,100 to £5,000. Employment Allowance increases to £10,500.


  • Income and Support for Households: The National Minimum Wage will rise to £12.21 per hour from April, with a phased increase towards a single adult rate. Carers’ Allowance will also increase to reflect 16 hours of weekly earnings at the minimum wage.


  • Capital Gains and Inheritance: Inheritance tax thresholds will be frozen until 2030, and stamp duty on second homes will rise to 5%. A 40% relief on business rates will apply to eligible sectors, while VAT will be added to private school fees starting in January.


  • Environmental and Health-Related Levies: A new vaping duty will be introduced from 2026, and Air Passenger Duty will rise by 50% for private jets. Fuel duty is frozen, but tobacco and alcohol duty rates will increase, with draught duty cut to reduce the cost of pints.


  • Social Support: The Household Support Fund will receive £1bn in new funding from next year, while £1.8bn has been allocated to Post Office scandal victims, and £11.8bn to those affected by the infected blood scandal.



Source: CPAA

 

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