Treasury Chancellor Rachel Reeves announced her 2024 Autumn Statement. This was Labour’s first budget in 14 years and the first budget in UK history to be delivered by a woman. 

Here is the summary of the key changes in the Budget:

• Personal Allowance will be frozen at £12,570 in fiscal year 2024/25. 
• Employers National Insurance will increase from 13.8% to 15% from 6 April 2024.  
• The Threshold for paying Employers National Insurance will be reduced from £9,100 to £5,000.
• The Employment Allowance of £5,000 will increase to £10,500.
• The National Living Wage will increase from £11.44 in 2024 to £12.21 from April 2025.
• The main rate of corporation tax will remain at 25%. 
• From 30 October 2024 Capital Gains tax rates for disposal will increase from 10% to 18% and the higher rate from 20% to 24%.
• The rate for Business Asset Disposal Relief will increase from 10% to 14% from 6 April 2025, and will increase again to 18% in 2026.
• The additional rate of stamp duty for second homes will rise from 3% to 5%. 
• The remittance basis scheme for non dom’s will cease in April 2025.
• VAT on private school fees will be introduced from January 2025.

The 2024 budget included a significant rise in taxes across the board with businesses and wealthy individuals bearing the brunt of the cost. Businesses in the hospitality and retail sectors will be hardest hit by the rise in employment costs.  

A more detailed analysis of the Budget will follow. Please monitor the website for updates. Belsize Accountancy are specialist accountants for contractors and small businesses.

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