Autumn Budget 2024
On Wednesday 30th October, Chancellor Rachel Reeves delivered the UK's Autumn Budget, marking an historical occasion as the first budget to be delivered by a female Chancellor. The Budget outlined Labour's plans to address the UK's economy.
The Budget set out £40 billion in tax raises, the largest in a generation, with the majority of those rises being borne by employers through the increasing of the rate of employer's national insurance from 13.8% and the reduction of the thresholds at which contributions apply. This means that the cost of employing an employee on average wages increases by approximately £1,000.
As expected, non-doms were also targeted with the previously announced measures largely being introduced as part of the abolition of domicile as a concept in the UK's tax system.
Capital Gains Tax increasesand reforms to Inheritance Tax (IHT), including reforms to Business and Agricultural Property Reliefs, were announced, as were increases to the 'national living wage'. Inherited Pensions will also move into the scope of IHT meaning that most unused pension funds and death benefits will be included in the value of a person's estate for IHT purposes.
There were no changes to the main rates of income tax, VAT or employee's national insurance, and Ms Reeves announced that from 2028 to 2029 the income tax thresholds will be updated in line with inflation. Interesting, just ahead of the next scheduled election.
There was little in the way of incentives for businesses apart from a previous commitment to maintain full expensing and the £1 million annual investment allowance, and a commitment to not raise the corporation tax rate above the current 25%.
More details of the specific measures can be found in our Budget Summary.
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