- Boston
01205 351114 - Bourne
01778 218001 - Grantham
01476 591550 - Horncastle
01507 522456 - Lincoln
01522 541181 - London
02078 715755 - Newark
01636 673731 - Sleaford
01529 411500 - Spalding
01775 725664 - Stamford
01780 764145
What the Autumn Budget means for you and your business
For Individuals
Income Tax
The personal allowance, thresholds and income tax rates will remain the same. From 2028, the income tax thresholds will be reviewed and increase in line with inflation.
Living Wage
From 1st April the National Living Wage will increase from £11.44 to £12.21 per hour for employees aged 21 and over, which is an increase of 6.7%.
State Pension
The triple lock has been retained therefore those in receipt of state pension will see an increase of 4.6% from April 2025.
Capital Gains Tax (CGT)
The CGT basic rate tax band has increased from 10% up to 18%, and any chargeable gains falling within the higher rate band from 20% up to 24%. This impacts any selling, disposing or giftings of commercial or second properties, shares or investments outside an ISA or pension tax wrapper. CGT on residential property remains at 18% and 24% respectively.
Inheritance Tax (IHT)
The freeze on the Nil Rate Band (£325,000) and Residence Nil Rate Band (£175,000) for IHT, which was due to expire in 2028, has been extended to 2030 which will pull more estates into the IHT net.
Inherited pensions pots will now be subject to Inheritance Tax from April 2027. Essentially, unused pension pots will then be taxed as part of the death estate, which is a significant change. Anyone who has undertaken tax planning around pensions will be affected and will need to review their current arrangements and plans.
Shareholdings on the Alternative Investment Market (AIM) will also see the Business Property Relief rate for IHT halved from 100% to 50%, at an effective rate of 20%. Again, anyone who has used this as part of their estate planning will need to consider a review.
Stamp Duty Land Tax (SDLT)
With effect from 31st October 2024, it has been announced that the higher SDLT rate will see an increase of 2% to the existing 3% uplift affecting individuals purchasing any property that is in addition to their main residence.
For Businesses
National Insurance Contributions (NIC)
Employer NICs will increase by 1.2% from 13.8% to 15% from April 2025, impacting businesses and business owners. The employee earnings threshold on employer NICs is reduced to £5,000, whilst the Employment Allowance is increased from £5,000 to £10,500 to help those companies with larger NIC bills. These changes will come into effect from April 2025, which may require businesses to review their structure.
Living Wage
As stated above, this measure again will have a significant impact on businesses.
Corporation Tax
This remains unchanged.
Capital Gains Tax
Business Asset Disposal Relief and Investors Relief has been kept on gains made up to £1 million. However, the rate will be increasing from 10% to 14% in April 2025 and then to 18% in April 2026, resulting in the need for careful planning for those selling or gifting qualifying business assets.
Inheritance Tax (IHT)
From April 2026, IHT relief at 100% will be capped at the first £1 million of combined agricultural property and business property qualifying assets. Assets over the £1 million threshold will receive a 50% relief for IHT, making the effective rate 20%. This will have a significant impact on farmers and businesses, and it will be more important than ever to seek advice about how to structure your succession planning.
These are the key changes to report and our Legal and Financial Teams will be considering the implications of some of the above in further detail in the coming weeks to provide more in-depth analysis.
Contact us
If you would like any advice regarding this, or any other legal and financial matter, please contact our specialist team: