Budget 2024

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In October 2024, Chancellor Rachel Reeves presented the UK’s Autumn Budget, introducing significant fiscal measures aimed at addressing economic challenges and funding public services. Key components of the budget include:

Taxation and Revenue Measures:

Tax Increases: The budget outlines £40 billion in tax hikes, marking the most substantial rise since 1993.

National Insurance Contributions (NICs): Employers’ NICs will increase from 13.8% to 15% on salaries above £5,000 starting April 2025, while employees’ NICs remain unchanged.

Capital Gains Tax (CGT): Effective immediately, the lower CGT rate rises from 10% to 18%, and the higher rate from 20% to 24%, aligning with rates on property sales.

Inheritance Tax: The threshold is frozen until 2030. From April 2027, pensions will be included in taxable estates, and from April 2026, agricultural property will have a £1 million exemption, with amounts above taxed at 10%.

Non-Domiciled Tax Status: The non-domiciled tax regime will end in 2025.

Wages and Social Support:

Minimum Wage: The National Minimum Wage will rise by 6.7% to £12.21 per hour from April 2025 for employees aged 21 years and above

Corporation Tax small profits rate

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On 1 April 2023, the main Corporation Tax (CT) rate was increased from 19% to 25%. A small profits rate of 19% was introduced for companies with profits below £50,000 (the lower limit).
Marginal relief was brought in for companies whose profits fall between the lower limit and £250,000 (the upper limit).
For some companies the lower and upper limits will be much lower, and certain companies will be entirely excluded from the small profits rate and marginal relief.