A guide to the Autumn Budget 2024

 

Key measures announced by the Chancellor in the Autumn Budget 2024 are summarised within this Guide.

 

BUSINESSES

 

Corporation tax

The corporate tax roadmap confirms the major features of the Corporation Tax regime for the duration of this Parliament including:

 

• capping the headline rate of Corporation Tax at 25%
• maintaining the Small Profits Rate and marginal relief at their current rates and thresholds
• maintaining permanent full expensing
• maintaining the £1m Annual Investment Allowance, writing down allowances, and the Structures and Buildings Allowance
• maintaining the rates for the merged R&D Expenditure Credit scheme and the Enhanced Support for R&D Intensive SMEs
• maintaining the Patent Box.

 

MTD

Making Tax Digital (MTD) for Income Tax will be extended to sole traders and landlords with income over £20,000 by the end of this Parliament. This expands the rollout of MTD for Income Tax, which is April 2026 for sole traders and landlords with income over £50,000 and April 2027 for those with income over £30,000.

 

Rates relief

Through 2025-26, the small business multiplier will be frozen, together with Small Business Rates Relief. Announced the intention to introduce permanently lower business rates multipliers for high street retail, hospitality and leisure properties (RHL) from 2026-27. The government intends to fund it through a higher multiplier for the most valuable properties.

 

IHT

IHT thresholds have been frozen until 2030. In addition, significant restrictions on agricultural and business property relief are proposed from April 2026. Unused pension funds and death benefits will be included in estates from April 2027.

 

CGT

Effective 30 October 2024, the main rates of Capital Gains Tax and carried interest will increase from 10% to 18% and from 20% to 24%. The rate for trustees and personal representatives will rise from 20% to 24%, while the existing rates for residential property (18% and 24%) will remain unchanged.

From 6 April 2025, the rate for Business Asset Disposal Relief and Investors’ Relief will increase from 10% to 14%. This will further rise from 14% to 18% on 6 April 2026. The Investors’ Relief lifetime limit will be reduced from £10m to £1m for qualifying disposals made on or after 30 October 2024.

Private equity managers will have to pay 32% tax on their carried interest gains from April 2025.

 

National Insurance and Employment allowance

From 6 April 2025, the rate of employer National Insurance Contributions (NICs) for Classes 1, 1A and 1B will rise by 1.2 percentage points to 15%.

 

The threshold at which employers start to pay NICs will decrease from £9,100 to £5,000 per year.

The government will increase the Employment Allowance from £5,000 to £10,500 and remove the previous £100,000 threshold, making it available to all eligible employers.

 

 

 

Capital Allowances: Key Features to be Maintained

The government will maintain key features of the capital allowances regime, including full expensing with a 100% first-year allowance for qualifying new main rate plant and machinery, and a 50% first-year allowance for special rate machinery, making the UK the only major economy with permanent full expensing.

The Annual Investment Allowance will continue to offer 100% first-year relief for plant and machinery investments up to £1m for all businesses, including unincorporated ones.
Writing down allowances will remain flexible, allowing businesses to choose which allowances to claim for main and special rate machinery.

Additionally, the Structures and Buildings Allowance will provide relief for capital expenditure on the purchase, construction, and renovation of new non-residential structures and buildings.

 

‘Full expensing’ deduction for leased assets

The Chancellor announced an intention to include full expensing tax relief on leased assets. The relief will enable businesses to be more efficient by leasing assets to nurture productivity by getting the newest, cleanest and most efficient plant and machinery into the hands of business owners. No timeline for the start of the relief has been announced and the relief is subject to draft legislation to be published.

 

VAT Thresholds

From 1 April 2024 the taxable turnover threshold which determines whether a person must be registered for VAT were increased from £85,000 to £90,000. The taxable turnover threshold which determines whether a person may apply for deregistration were increased from £83,000 to £88,000. No further changes were announced.

 

Furnished Holiday Lettings (FHL) regime abolished

The government will abolish the FHL tax regime, eliminating the tax advantage for landlords who let out short-term furnished holiday properties over those who let out residential properties to longer-term tenants. This will take effect from April 2025.

 

At present, landlords who use the furnished holiday lets regime can deduct the full cost of their mortgage interest payments from their rental income, are entitled to capital allowances on the furniture, pay lower capital gains tax (CGT) when they sell and are entitled to CGT rollover relief etc.

 

 

 

INDIVIDUALS

 

Income tax

Personal tax thresholds – ie personal allowance, basic and higher-rate thresholds for income tax remain frozen until April 2028 at the current level of £12,570 and £50,270. The additional rate threshold was reduced from £150,000 to £125,140 from 6 April 2023. The Chancellor did announce that the thresholds will be uprated by inflation from April 2028 onwards.

 

Personal allowance for higher rates from 2023/24

Where annual income exceeds £100,000, personal allowance is lost at a rate of £1 for every £2 of income above £100,000. This is the threshold where the entire personal allowance is lost.

 

The loss of the personal allowance means a person is taxed at 40% on the additional £2 of income, and they also pay an extra 40% on the £1 of personal allowance lost. This results in a marginal rate of 60%, which continues up to £125,140 (£100,000 + (£12,570 x 2)). At the £125,140 point the entire personal allowance is lost.

 

SDLT

From 31 October 2024 the Higher Rates for Additional Dwellings (HRAD) surcharge on Stamp Duty Land Tax (SDLT) will be increased by 2 percentage points from 3% to 5%.

 

Taxation of Employee Ownership Trusts and Employee Benefits Trusts

A package of reforms to the taxation of Employee Ownership Trusts and Employee Benefit Trusts will be legislated. These reforms will ensure that the regimes remain focused on encouraging employee ownership and rewarding employees, and to prevent opportunities for abuse. The changes will take effect from 30 October 2024.

 

Tax treatment of double cab pick-up vehicles

Following a Court of Appeal decision, the government will not introduce legislation to maintain the treatment of double cab pick-up vehicles with a payload of one tonne or more as goods vehicles. HMRC is updating guidance to clarify the position in respect of such vehicles which will be treated as cars for capital allowances, for benefits in kind and for some deductions from business profits. Transitional arrangements will also apply.

 

Annual uprating of the van benefit charge and the car and van fuel benefit charges for tax year 2025 to 2026

The increases to the van benefit charge and the car and van fuel benefit charges will using the September 2024 Consumer Prices Index (CPI).

 

The following new rates will come into effect from 6 April 2025:

 

• the van benefit charge will be £4,020 in tax year 2025 to 2026
• the van fuel benefit charge will be £769 in tax year 2025 to 2026
• the car fuel benefit charge multiplier will be £28,200 in tax year 2025 to 2026.

 

Taxation of company cars — the appropriate percentage for tax years 2028 to 2029 and 2029 to 2030

The government is setting company car tax rates for tax years 2028 to 2029 and 2029 to 2030:

 

• Appropriate percentages for zero emission and electric vehicles will increase by 2 percentage points per year in 2028 to 2029 and 2029 to 2030, rising to an appropriate percentage of 9% in tax year 2029 to 2030.  
• Appropriate percentages for all cars with emissions of 1 to 50g of CO2 per kilometre, including hybrid vehicles, will rise to 18% in tax year 2028 to 2029 and 19% in tax year 2029 to 2030.   
• Appropriate percentages for all other vehicle bands will increase by 1 percentage point per year in tax years 2028 to 2029 and 2029 to 2030. This will be to a maximum appropriate percentage of 38% for tax year 2028 to 2029 and 39% for tax year 2029 to 2030. 

 

Changes to the taxation of non-UK domiciled individuals

The government will introduce legislation in Finance Bill 2024-25, abolishing the remittance basis of taxation for non-UK domiciled individuals and replacing it with a residence-based regime, which will take effect from 6 April 2025.

 

Individuals who opt into the regime will not pay UK tax on foreign income and gains (FIG) for the first four years of tax residence. From 6 April 2025, the government will introduce a new residence-based system for Inheritance Tax.

 

 

KEY TAX RATES

 

Income tax rates: England, Wales & Northern Ireland (non-dividend income) (note 1)	2025/26	2024/25
0% starting rate for savings only	Up to £5,000	Up to £5,000
0% on personal allowance (subject to any clawback of PA)	£0 - £12,570	£0 - £12,570
20% basic rate tax	£12,571 - £50,270	£12,571 - £50,270
40% higher rate tax	£50,271 - £125,140	£50,271 - £125,140
45% additional rate tax	Above £125,140	Above £125,140
Scottish rates of income tax (non-dividend income) (note 2)
0% on personal allowance (subject to any clawback of PA)	£0 - £12,570	£0 - £12,570
19% starting rate	£12,571 - £14,876	£12,571 - £14,876
20% basic rate tax	£14,877 - £26,561	£14,877 - £26,561
21% intermediate rate tax	£26,562 - £43,662	£26,562 - £43,662
42% higher rate tax	£43,663 - £75,000	£43,663 - £75,000
45% advanced rate	£75,001 - £125,140	£75,001 - £125,140
48% top rate (47% for 2023-24)	Above £125,140	Above £125,140
Income tax rates (dividend income)
Dividend ordinary rate (for dividends within basic rate band)	8.75%	8.75%
Dividend upper rate (for dividends within higher rate band)	33.75%	33.75%
Dividend additional rate (for dividends above higher rate band)	39.35%	39.35%
Personal Allowances
Personal allowance	£12,570	£12,570
Dividend allowance (no allowance for trustees)	£500	£500
Maximum married couple’s allowance for those born before 6 April 1935 (note 5)	£11,270	£11,080
Married couple’s allowance – minimum amount	£4,360	£4,280
Micro entrepreneur’s allowance (property or trading income)	£1,000 each	£1,000 each
Income limit for personal allowance (note 6)	£100,000	£100,000
Income limit for married couple’s allowance: born before 6 April 1935	£37,700	£37,000
Blind person’s allowance	£3,130	£3,070
Rent-a-room relief	£7,500	£7,500
Transferable/shareable tax allowance for married couples and civil partners (note 7)	£1,260	£1,260
Personal savings allowance for basic rate taxpayers	£1,000	£1,000
Personal savings allowance for higher rate taxpayers	£500	£500
Personal savings allowance for additional rate taxpayers	£0	£0

 

 

 

 

 

National insurance	2025/26	2024/25
Lower earnings limit, primary class 1 (per week)	£125	£123
Upper earnings limit, primary class 1 (per week)	£967	£967
Apprentice upper secondary threshold (AUST) for under 21s/25s	£967	£967
Primary threshold (per week)	£242	£242
Secondary threshold (per week)	£96	£175
Employment allowance (per year/employer)	£10,500	£5,000
Employee’s primary class 1 rate between primary threshold and upper earnings limit	8%	8%
Employee’s primary class 1 rate above upper earnings limit	2%	2%
Married woman’s reduced rate between primary threshold and upper earnings limit	1.85%	1.85%
Married woman’s rate above upper earnings limit	2%	2%
Employer's secondary class 1 rate above secondary threshold	15%	13.8%
Class 2 small profits threshold (per year)	£6,845	£6,725
Class 2 lower profits threshold (per year)	£12,570	£12,570
Class 2 (where profits are below small profit threshold (voluntary per week))	£3.50	£3.45
Class 2 rate (per week where profits are above small profits threshold)	£0	£0
Class 3 voluntary rate (per week)	£17.75	£17.45
Class 4 lower profits limit	£12,570	£12,570
Class 4 upper profits limit	£50,270	£50,270
Class 4 rate between lower profits limit and upper profits limit	6%	6%
Class 4 rate above upper profits limit	2%	2%
Class 1A/1B NIC	15%	13.8%

 

 

 

 

 

 

 

 

 

 

Autumn Budget 2024

 

Stamp duty land taxes: UK

 

ENGLAND & NORTHERN IRELAND: STAMP DUTY LAND TAX (SDLT) RATES

 

Residential properties: 23 September 2022 – 30 October 2024

Property value	UK residents		Non-UK residents
	Only property	Additional property	Only property	Additional property
Up to £250,000	Nil	3%	2%	5%
Next portion from £250,001 to £925,000	5%	8%	7%	10%
Next portion from £925,001 to £1,500,000	10%	13%	12%	15%
Remaining amount above £1,500,000	12%	15%	14%	17%

 

 

 

Residential properties: 31 October 2024 – 31 March 2025

Property value	UK residents		Non-UK residents
	Only property	Additional property	Only property	Additional property
Up to £250,000	Nil	5%	2%	7%
Next portion from £250,001 to £925,000	5%	10%	7%	12%
Next portion from £925,001 to £1,500,000	10%	15%	12%	17%
Remaining amount above £1,500,000	12%	17%	14%	19%

 

Residential properties: From 1 April 2025

Property value	UK residents		Non-UK residents
	Only property	Additional property	Only property	Additional property
Up to £125,000	Nil	5%	2%	7%
Next portion from £125,001 to £250,000	2%	7%	4%	9%
Next portion from £250,001 to £925,000	5%	10%	7%	12%
Next portion from £925,001 to £1,500,000	10%	15%	12%	17%
Remaining amount above £1,500,000	12%	17%	14%	19%

 

Note 1: From 1 April 2016, higher rates of SDLT apply on purchases of additional properties by individuals. This rate is also payable by companies and other entities.

Note 2: From 1 April 2021, non-UK residents purchasing a residential property in England and Northern Ireland will be subject to a 2% SDLT surcharge in addition to the main rate SDLT payable by UK residents.

Note 3: Higher rates do not apply while replacing main residence, subject to meeting certain conditions or for purchases under £40,000.

Note 4: Sliding-scale rates do not apply when residential property is acquired by certain corporates and ‘non-natural persons’ (companies, partnerships with a company as a partner and collective investment schemes) for more than £500,000. Instead, these entities pay a flat rate of 17% SDLT from 31 October 2024 (15% up to 30 October 2024) (19% and 17% for non-UK resident entities for respective dates), subject to relief for qualifying activities or bodies. ‘Non-natural persons’ may also be subject to the Annual Tax on Enveloped Dwellings (ATED) regime.

SDLT for first-time buyers from 1 April 2025	Rates of tax
Up to £300,000	Nil
Next portion from £300,001 to £500,000	5%
Remaining amount above £500,000	Standard rates apply

 

SDLT for first-time buyers from 23 September 2022 - 31 March 2025	Rates of tax
Up to £425,000	Nil
Next portion from £425,001 to £625,000	5%
Remaining amount above £625,000	Standard rates apply

 

Non-residential properties or mixed-use properties

Property or lease premium or transfer value	Rates of tax
Up to £150,000	Nil
The next portion from £150,001 to £250,000	2%
The remaining amount above £250,000	5%

 

New leasehold properties: SDLT rates on net present value (NPV) of rent: 23 September 2022 – 31 March 2025

Residential property	Non-residential or mixed-use properties	Rates of tax
Up to £250,000	Up to £150,000	Nil
Over £250,000	Next portion from £150,001 to £5m	1%
	Over £5m	2%

 

 

 

New leasehold properties: SDLT rates on net present value (NPV) of rent: From 1 April 2025 onwards

Residential property	Non-residential or mixed-use properties	Rates of tax
Up to £125,000	Up to £150,000	Nil
Over £125,000	Next portion from £150,001 to £5m	1%
	Over £5m	2%

 

SCOTLAND: LAND AND BUILDINGS TRANSACTION TAX (LBTT) RATES

Residential properties: from 16 December 2022

Property or lease premium or transfer value	Only property rates	Additional property rates (note 6)
Up to £145,000 (note 5)	Nil	6%
Next portion from £145,001 to £250,000	2%	8%
Next portion from £250,001 to £325,000	5%	11%
Next portion from £325,001 to £750,000	10%	16%
Remaining amount over £750,000	12%	18%

 

Note 5: First-time Buyer Relief continues to apply in Scotland, increasing the nil-rate band from £145,000 to £175,000 for first-time buyers.

Note 6: Higher rates do not apply while replacing main residence, subject to meeting certain conditions or for purchases under £40,000. The 6% rate will apply to transactions entered into on or after 16 December 2022.

 

 

 

Non-residential properties or mixed-use properties

Property or lease premium or transfer value	Rates of tax
Up to £150,000	Nil
Next portion from £150,001 to £250,000	1%
Remaining amount over £250,000	5%

 

Non-residential leasehold properties: Net present value (NPV) of rent

NPV of rent payable	Rates of tax
Up to £150,000	Nil
Next portion from £150,001 to £2m	1%
Remaining amount over £2m	2%

 

WALES: LAND TRANSACTION TAX (LTT) RATES

Residential properties: from 10 October 2022

Property value	Only property rates	Additional property rates
Up to £180,000	Nil	4%
Next portion from £180,001 to £225,000	Nil	7.5%
Next portion from £225,001 to £250,000	6%	7.5%
Next portion from £250,001 to £400,000	6%	9%
Next portion from £400,001 to £750,000	7.5%	11.5%
Next portion from £750,001 to £1.5m	10.0%	14.0%
Remaining amount over £1.5m	12.0%	16.0%

 

 

Non-residential properties or mixed-use properties

Property or lease premium or transfer value	Rates of tax
Up to £225,000	Nil
Next portion from £225,001 to £250,000	1%
Next portion from £250,001 to £1m	5%
Remaining amount over £1m	6%

 

Non-residential leasehold properties: LTT rates on NPV of rent

NPV of rent payable	Rates of tax
Up to £225,000	Nil
Next portion from £225,001 to £2m	1%
Remaining amount over £2m	2%

 

Stamp duty on shares and securities

Stamp duty payable on transfer of shares and securities is 0.5%, subject to the value of the consideration being above £1,000.

 

 

 

 

 

October 2024

 

 

 

ACCA LEGAL NOTICE

This technical factsheet is for guidance purposes only. It is not a substitute for obtaining specific legal advice. While every care has been taken with the preparation of the technical factsheet, we do not accept any responsibility for any loss occasioned by reliance on the contents.