Following the Chancellor of the Exchequer’s Autumn Budget announcement earlier this week, we have prepared a Autumn Budget Guide to help you navigate the latest updates and changes.

Summary of the headline changes resulting from the Autumn Budget:
  • Employers National Insurance Contribution –National Insurance contributions on workers earnings above £5,000 (previously £9,100) rising by 1.2 % to 15% from April 2025.
  • Capital Gains Tax – Tax on profits will increase from 10% to 18% for basic rate taxpayers, and 20% to 24% for those who pay at the higher rate.
  • Inheritance Tax – Inheritance Tax threshold freeze will be maintained until 2030.
  • Employment Allowance – National Insurance Employment Allowance will increase from £5,000 to £10,500.
  • National Minimum Wage – National Minimum Wage will increase from April 2025 for employees aged 21 and over by 6.7% from £11.44 an hour to £12.21 and for 18 to 20-year-olds go up from £8.60 an hour to £10. For those aged 16 or 17, the minimum wage will rise from £6.40 an hour to £7.55.
  • Fuel Duty – 5p a litre duty cut to fuel remains frozen and kept for another year.
  • Business Rate Relief – 40% (down from 75%) on business rates up to a maximum of £110k in year 2025/6 for the retail, leisure and hospitality sectors. The government will introduce permanently lower business rates for retail, hospitality and leisure businesses from 2026-27. Until then they will receive 40% relief on business rates up to a cap of £110,000.
  • Corporation Tax – Corporation tax remains at 25%.
  • VAT on Private School Fees – This will go ahead as planned from January 2025 and it is planned to remove business rate relief from April 2025.
  • Stamp Duty on second homes – With immediate effect stamp duty on second homes will rise from 3% to 5%.
  • Inherited Pensions – Inherited pensions will be subject to Inheritance Tax from April 2027.

You can download our full Autumn Budget Statement Guide below. Should you have any questions or require further clarification on any of the points mentioned, please do not hesitate to reach out to us or contact your adviser directly.

To discuss any of the issues raised in this article, please contact us.

Personal circumstances differ and not all of this information is applicable to every client and/or their business, this information is general in nature and should not be relied upon without seeking specific professional financial advice.

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Thresholds, percentage rates and tax legislation may change in subsequent finance acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.

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