The Autumn Budget 2024 will be delivered by Rachel Reeves on Wednesday 30th October, with ‘boosting the UK economy’ front and centre. With just under one week to go until Labour’s first budget announcement, all eyes and ears are tuned into the potential changes ahead.
Until the announcement is made, there will be no definitive answer. Though, there has been much speculation on how this will affect both employees and employers.
WHAT COULD BE ANNOUNCED IN THE AUTUMN BUDGET 2024?
National Insurance Contributions by Employers The prime minister and chancellor have refused to rule out an increase in employer NI payments. Reeves said Labour’s election pledge related to employee payments. At the moment companies do not pay NI on pension contributions they make for staff, but reports have suggested this could change.
Inheritance Tax Currently, 40%, Inheritance Tax is usually paid on the value of a deceased person’s assets above a threshold of ยฃ325,000. Changes to a number of exemptions which affect how much inheritance tax people have to pay are being considered.
Capital Gains Tax This tax is charged on the profit made from sale of assets that have increased in value, such as second homes or investments. It is paid by individuals and some business owners. For higher earners, the levy is currently 24% on gains from selling additional property, or 20% on profits from other assets like shares. These rates could increase.
Pension Taxation Changing the way private pensions are taxed could include; reducing the cap on tax-free lump sums from pension pots, cutting the tax break for employers putting money into employees’ pensions, or changing the system of tax relief on pension contributions.
Stamp Duty Stamp Duty Land Tax is paid if you buy property or land over a certain price in England and Northern Ireland. In 2022, the rate at which people start to pay was increased from ยฃ125,000 to ยฃ250,000. For first-time buyers it rose from ยฃ300,000 to ยฃ450,000. However, the higher thresholds are only due to last until March 2025 after which they will return to the original levels. Labour has not committed to an extension.
Fuel Duty Fuel duty has not risen in more than a decade. Frozen between 2012-2022, and a cut by 5p in March 2022, some motoring groups argue the cut was never passed on to motorists.
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