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AUTUMN BUDGET 2024
Chancellor Rachel Reeves delivered her Budget on Wednesday 30 October 2024. This article focuses on the issues likely to affect you or your business.
National Insurance Employees and Nation Insurance Contributions (NICs) The government announced that it will increase the employer rate to 15% from 6 April 2025. The Secondary Threshold is the point at which employers become liable to pay NICs on an individual employee’s earnings and this will reduce to £5,000 a year until 6 April 2028. The Employment Allowance will increase from £5,000 to £10,500, and remove the £100,000 threshold for eligibility, expanding this to all eligible employers with employer NIC bills.
Other changes for 2025/26 The government will increase the Lower Earnings Limit to £6,500 per annum (£125 per week) and the Small Profits Threshold to £6,845 per annum.
National Living Wage (NLW) and National Minimum Wage The below wages increase will come into force from 1 April 2025.
NLW 18-20 £12.21
£10.00
16-17 £7.55
46
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Apprentices £7.55
The apprenticeship rate applies to apprentices under 19 or 19 and over in the first year of apprenticeship. The NLW applies to those aged 21 and over.
Benefit In Kind Rates The rates of tax for company cars are amended for 2025/26: • The charge for zero emission cars rises from 2% to 3%.
• The charge for other cars increases by 1%. • The maximum benefit of 37% remains.
The government has confirmed increases up to and including 2029/30.
Capital Gains Tax The Capital Gains Tax rates will increase for disposals, other than of residential property and carried interest, made on or after 30 October 2024.
The basic rate will increase to 18% and the 20% rate will increase to 24%. The rate applying to trustees and personal representatives will increase to 24%.
The rate applying for individuals claiming Business Asset Disposal Relief and Investors’ Relief will increase to 14% for disposals made on or after 6 April 2025 and will increase again to 18% for disposals made on or after 6 April 2026.
Inheritance Tax (IHT) From 6 April 2026, agricultural and business property will continue to benefit from the 100% IHT relief up to a limit of £1 million. The limit is a combined limit for both agricultural and business property. Property in excess of the limit will benefit from a 50% relief.
The government will bring unused pension funds and death benefits payable from a pension into a person’s estate for IHT purposes from 6 April 2027.
If there is anything in this article that affects you – or somebody you know – please speak to Steven McVitty for independent professional advice. 028 9032 5050.
FROM 6 APRIL 2026, AGRICULTURAL AND BUSINESS PROPERTY WILL CONTINUE TO BENEFIT FROM THE 100% IHT RELIEF UP TO A LIMIT OF £1 MILLION
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