AFTER:
UK Autumn Budget 2024: What Changed and What It Means for You
The UK Autumn Budget 2024 confirmed a series of tax and compliance changes that affect employers, business owners, investors, landlords, and internationally mobile individuals. Several measures took effect from 30 October 2024, with further changes from 6 April 2025, 6 April 2026, and 6 April 2027. This guide summarises the key announcements and what you should review next
Major Tax Changes in the 2024 Autumn Budget
This Budget is particularly significant for employers and investors. The biggest practical changes are the increase in employer National Insurance, a lower employer NIC threshold, updates to Capital Gains Tax rates and reliefs, and revisions to Stamp Duty Land Tax for additional properties and certain corporate purchases.
Employer National Insurance Changes
One of the big shifts in this budget is a hike in the employer NIC rate:
From 6 April 2025, employer (Secondary Class 1) NICs increase from 13.8% to 15%. The Secondary Threshold reduces from £9,100 to £5,000 (set until 6 April 2028, then uprated by CPI thereafter).
Also from 6 April 2025, Employment Allowance increases from £5,000 to £10,500 and the £100,000 eligibility threshold is removed.
Capital Gains Tax (CGT) Changes
Capital Gains Tax is also seeing some important adjustments:
From 30 October 2024, the main CGT rates increase to 18% and 24%.
For Business Asset Disposal Relief (BADR) and Investors’ Relief, the rate increases to 14% from 6 April 2025, and to 18% from 6 April 2026.
The Investors’ Relief lifetime limit reduces to £1 million for qualifying disposals on or after 30 October 2024.
Carried interest moves to a flat 32% rate from 6 April 2025.
Stamp Duty Land Tax (SDLT) – England Only
As of 31st October 2024, the following changes will apply:
From 31 October 2024, the additional dwellings SDLT surcharge increases from 3% to 5%.
From 31 October 2024, the SDLT rate for certain corporate purchases of residential property over £500,000 increases from 15% to 17%.
Inheritance Tax
The nil rate band for Inheritance Tax (IHT) remains at £325,000, with an additional £175,000 residence nil rate band.
The IHT nil-rate band remains £325,000 and the residence nil-rate band remains £175,000, with thresholds frozen until 5 April 2030.
APR/BPR reforms introduce a £2.5 million allowance for 100% relief, with 50% relief above that, and reduced relief for certain “not listed” shares (from 6 April 2026).
From 6 April 2027, unused pension funds and death benefits will be included in the value of estates for IHT purposes.
Income Tax & NIC Thresholds
Expect these thresholds to stay frozen until March 2028, with future adjustments linked to inflation.
Business Rates – England Only
In a move to support high street businesses:
- Relief for Retail, Hospitality, and Leisure: Temporary relief becomes permanent for properties with a rateable value below £500,000 starting in 2026.
- Multiplier Adjustments: A higher multiplier will apply to properties valued above £500,000 from 2026.
Capital Allowances on Zero-Emission Cars
Aligned with the Government’s commitment to achieving net-zero greenhouse gas emissions by 2050, electric vehicle incentives are being maintained.
The 100% First Year Allowance for qualifying expenditure on zero-emission cars, as well as plant and machinery for electric vehicle charge points, has been extended for another year.
These first-year allowances will now expire on 31st March 2026 for corporation tax purposes and 5th April 2026 for income tax purposes.
Research and Development (R&D) Updates
The Chancellor will explore expanding advance clearances for R&D relief in Spring 2025, as part of ongoing efforts to reduce error rates in tax claims.
Interest on Late Paid Tax
From 6 April 2025, late payment interest increases by 1.5 percentage points, changing the main late payment interest calculation from Bank of England base rate + 2.5% to base rate + 4%.
(The actual percentage will vary as the Bank of England base rate changes.)
National Minimum Wage Adjustments
Starting from April 2025:
- National Living Wage: Up by 6.7% to £12.21 per hour for those aged 21 and over.
- Wages for Younger Workers: An increase to £10.00 per hour for 18-20 year-olds, with similar boosts for under-18s and apprentices.
VAT on Private School Fees
From January 1, 2025, private school fees will include VAT at the standard 20%. Additionally, charitable rate relief on business rates for private schools will end in April 2025.
Payroll Reporting for Benefits in Kind (BIKs)
From April 2026, payrolling of most Benefits in Kind becomes mandatory in phases. Reporting for loans and accommodation is initially voluntary and under review.
Making Tax Digital
From 6 April 2026, MTD for Income Tax applies to sole traders and landlords with qualifying income over £50,000 (based on 2024/25). It requires digital records, MTD-compatible software, and quarterly updates.
Company Car Tax
The company car tax rates have been set through to the 2027/28 tax year. Importantly, the tax rate for electric vehicles will increase from 2% in 2024/25 to 5% by 2027/28. This rise indicates that salary sacrifice schemes will remain advantageous for both employers and employees, providing national insurance savings.
Non-Dom Tax Regime Reforms
The preferential tax treatment for non-domiciled individuals will be phased out from April 6, 2025. A new residence-based tax system will limit relief on overseas income and gains to the first four years of UK residency.
If you want to understand how Autumn Budget 2024 affects your payroll costs, investment plans, property purchases, or MTD readiness for April 2026, speak to Accounting People. We’ll review your position and give you a clear, practical action plan.
