03/11/2024
Key updates from the Autumn Budget:
Minimum Wage Increase: Adult NMW rises by 6.7% to £12.21, with a 16.3% increase to £10 for 18-20-year-olds, starting April 2025.
Carer’s Allowance: Carers can now earn up to £10k/year without impacting their benefits.
State Pension Increase: A 4.1% rise in the state pension for 2025/26.
Tax Compliance: Increased penalties on unpaid taxes and a stronger focus on tax avoidance schemes.
Employer NI Changes: Employer NI contributions rise to 15% from April 2025, with the NI threshold lowered to £5,000, while the employment allowance doubles to £10.5k for added support to small businesses.
Capital Gains Tax (CGT): CGT rates increase to 18% (basic) and 24% (higher), with no changes affecting residential property sales, maintaining current reliefs.
Non-Dom Tax Status: In a major shift, the government is abolishing the “non-domiciled” (non-dom) tax regime, which allowed UK residents with foreign domiciles to avoid tax on overseas income. This change will bring non-doms into the standard tax system.
Inheritance Tax (IHT) Adjustments: IHT thresholds are frozen at £325,000 until 2030, with residence relief allowing this to increase to £500,000 per individual, or £1 million per couple on the family home. Pensions will also be counted as part of the taxable estate from 2027, impacting estate planning for high-net-worth individuals.
Duties and VAT: New duties on vapes, VAT on private school fees, and increased stamp duty on additional home purchases.
Business Support: Retail, hospitality, and leisure sectors benefit from a 40% business rate relief, capped at £110k per business.
