Key changes to business taxes and personal taxes in the 2024 Autumn budget

Last week saw chancellor Rachel Reeves deliver Labour’s first budget since 2010 which would seek to raise £40 billion via tax rises to fund the NHS, front line services and public services. Within the 170-page autumn budget and 76-minute speech are a few key points in relation to personal tax and business taxes.

Business tax

• The employment allowance, which allows eligible businesses to reduce their national insurance, has been increased from £5,000 a year to £10,500 which aims to help small businesses.
• However, companies will now pay national insurance at a rate of 15% on salaries above £5,000 from April 2025. This has increased from 13.8% on salaries above £9,100.
• On 1 April 2023 the main rate of Corporation tax was increased from 19% to 25% for companies with profits over £250k. This has been confirmed to remain at 25% until the next election.
• Minimum wage for over 21’s to rise from £11.44 to £12.21 from April 2025.
• Eligible retail, hospitality and leisure (RHL) properties in England will receive 40% relief on their business rates liability for 2025/26 up to a cash cap for a business of £110,000.

Personal tax

• Main rate of capital gains tax raises came into immediate effect from 10% to 18% for basic rate taxpayers and 20% to 24% for higher rate taxpayers to bring in line with the capital gains tax on residential property.
• Business asset disposal relief will continue to be 10% in the current tax year and will rise to 14% for the 2024/25 tax year and further rise to 18% from the 2026/27 tax year.
• The threshold for income tax bands will remain the same until April 2028 when they will be adjusted in line with inflation. Recent freezes on income tax thresholds have resulted in more people becoming liable to tax or falling into higher rate bands.
• The additional stamp duty land tax rate when buying second homes and buy-to-let properties will increase from 3% to 5% from 31 October 2024.
• From April 2026 the current 100% relief for inheritance tax on business and agricultural assets will be restricted to £1 million, with asset values above this amount being liable to 20% tax. Unused pension funds will also be brought into the scope of inheritance tax from April 2027.

For a full breakdown of the budget please use the link below for the Perrys budget autumn summary or contact your local Perrys branch.

Budget Summary