SMH responds to the Autumn Budget 2024

1st November 2024

In presenting Labour’s widely anticipated first Budget in 14 years, the Chancellor was faced with a challenging task

Following her announcement of a “black hole” in the public finances, the need to replenish the Treasury’s funds while maintaining Labour’s manifesto promises seemed a tall order.

In the event, Ms Reeves outlined a programme of around £41 billion worth of tax increases over the next five years, alongside plans to rebuild faltering infrastructure, the health service, schools and more. Any idea of a return to austerity was quashed, but how this will be achieved lies in the detail.

SMH Group, a leading firm of Chartered Accountants and Financial Advisers, presents the key points of the Autumn Budget:

• The main rate of lass 1 employer national insurance contribution (NIC) will be increased from 13.8% to 15% from 6 April 2025.
• The secondary threshold at which employer NICs are payable will be reduced from £9,100 to £5,000.
• Main rates of capital gains tax increases with immediate effect to 18% for non and basic rate taxpayers and 24% for higher and additional rate taxpayers.
• Inheritance tax (IHT) business and agricultural reliefs will be capped at a total of £1 million from April 2026.
• Unused pension funds and death benefits will be included as part of an individual’s estate for IHT purposes from April 2027.
• The additional SDLT charge for second homes and buy-to-let properties increases from 3% to 5% from 31 October 2024.
• VAT of 20% will be applied to private school and boarding fees from 1 January 2025, while the charitable relief for English business rates will be withdrawn from 1 April 2025.
• ISAs, Junior ISAs and Lifetime ISA limits will remain frozen until April 2030.
• Fuel duty rates for 2025/26 will remain frozen and alcohol rates on certain draught beers will be cut.

As always, the Budget publications included a wide range of detailed proposals with plenty to unpack. Our Budget Summary highlights the key points most likely to impact you.

Download our 2024 Autumn Budget Summary here

If you have any further questions about the Autumn Budget, please get in touch with the SMH Group on 0114 266 4432 or info@smh.group.