Autumn Budget 2024
Key Changes Affecting Tax Payers , Tax Matters...
For Individuals And Landlords
- Income tax rates and National Insurance (NI) contributions paid by employees, as well as VAT rates, will remain the same.
- Income tax band thresholds will increase in line with inflation post-2028.
- The basic rate capital gains tax on profits from selling shares will rise from 10% to 18%, with the higher rate increasing from 20% to 24%.
- Rates on profits from selling additional properties will stay unchanged.
- Stamp duty surcharge for second home purchases in England and Northern Ireland will rise from 3% to 5%.
- The threshold at which house buyers begin paying stamp duty on a main residence will decrease from £250,000 to £125,000 in April.
- The stamp duty threshold for first-time buyers will revert back to £300,000 from £425,000.
- The freeze on inheritance tax thresholds has been extended by two more years to 2030, while unspent pension pots will also be subject to this tax from 2027.
- Allowances and exemptions for inheriting farmland will be reduced starting in 2026.
For Self Employed Individuals / Small Businesses with Employees
- Employers will pay NI at 15% on wages/salaries over £5,000 per year starting from April, as opposed to the previous 13.8% on salaries above £9,100.
- The employment allowance, allowing eligible employers to reduce their annual National Insurance liability, will increase from £5,000 to £10,500.
- The minimum wage for individuals aged 21 and over will increase from £11.44 to £12.21 per hour in April.
- The rate for 18 to 20-year-olds will rise from £8.60 to £10.00.
For Self Employed Individuals Witha Transport Expenses
- The 5p cut in fuel duty for petrol and diesel, initially scheduled to end in April 2025, will now be extended for another year.
- The cap on single bus fares outside London and Greater Manchester will increase from £2 to £3 starting in January.
- Air Passenger Duty will rise in 2026 by £2 for short-haul economy flights and £12 for long-haul flights, while rates for private jets will increase by 50%.
- Vehicle Excise Duty for new non-electric cars will double in the first year, excluding the most efficient petrol vehicles.