Autumn Budget 2024 at a glance

Chancellor's Autumn Budget 30 October 2024

Download our full summary (pdf)
Download our tax tables (pdf)

Following months of speculation and uncertainty, Rachel Reeves's first Budget is the largest tax raising Budget since that of Norman Lamont in 1993, with around £40bn being raised for government programmes of "national renewal" and a growing "black hole" in public finances.

And Labour created another black hole of its own in trying to define a "working person" when promising not to tax them. If you have assets and savings, you don't fall into its economic definition it seems.

And maybe a third with the Chancellor's tweaking of her fiscal rules to allow an extra £50bn of borrowing to "invest, invest, invest". The Bank of England's inflation target remains at 2%. It reduced interest rates on 7 November to 4.75%.

In contrast to Jeremy Hunt's spring Budget, which saw cuts to national insurance, this Budget takes us in reverse with NIC increases on employers, which will feed through to employees via an impact on wage rises and recruitment.

There was a pre-election promise not to raise NICs, but to paraphrase Sir Humphrey's observations in Yes Minister about politicians: "Ministers have a range of dazzling qualities, including enviable intellectual suppleness and moral manoeuvrability."

As well as increases to employers' NIC, the national minimum wage will rise to accompany greater employer regulation. Thus adding to the costs of any business that employs people.

And with frozen tax allowances, more people are likely to be dragged into paying tax, including pensioners. Allowances remain frozen until 2028, rather than extended beyond that as was expected. Tax as a share of GDP rises to its highest level on record, reaching 38% of GDP by 2027/28.

In the spring Budget there was a surprise 4% cut in the higher rate of CGT on residential property disposals, but now we have another reversal with rates increasing again.

Business Asset Disposal Relief rate goes up to 14% from 6 April 2025 but the non-BADR rate goes up from 30 October 2024.

The government is raising revenue by increasing CGT, while ensuring that the UK tax system remains internationally competitive, with headline rates below France, Germany and Italy. CGT is paid by fewer than 1% of adults each year. The main rates of CGT are currently charged at a lower rate of 10% and a higher rate of 20%, and these will be increased to 18% and 24% respectively from 30 October 2024. These new rates will match the residential property rates, which are not changing.

Keeping fuel duty frozen is good news for businesses with high distribution costs.

And good news for people investing in their pensions; the expected change in tax relief was not announced.

A new corporate tax business roadmap will bring some clarity for businesses.

See Treasury page and Autumn Budget Executive summary and the Overview of rates

Brief recap – key changes previously announced:

Personal tax thresholds, CGT IHT etc. limits all frozen until 2028
Stamp Duty Land Tax cuts to end on 31 March 2025.

Autumn Budget 2024 key measures announced:

Taxes

The national minimum wage will rise in April 2025 to £12.21 per hour, moving towards a single national rate
Crackdown on umbrella companies and promoters of tax avoidance schemes
Fuel duty - frozen for next year
Employers' NIC increases by 1.2% to 15% from April 2025. And the threshold decreases at which the NIC becomes payable will fall steeply to £5,000 from £9,100.
Employment Allowance to increase to £10,500 from £5,000
Capital Gains Tax - from today (30 October) lower rate increases from 10% to 18% and higher rate from 20% to 24%. CGT on residential property remains unchanged.
£1m Business Asset Disposal Relief to be retained, but with an increasing rate to 14% from April 2025.
EIS kept until 2035
Inheritance tax - threshold frozen until 2030
IHT - from April 2027 inherited pension to be included in IHT (details to follow)
IHT BPR/APR to be kept but less generous in future
IHT APR to be extended to where land is used for environmental use
Tobacco duty to increase with RPI
Air Passenger duty on private jets to rise
Business rates - existing 40% on business rates for the retail, hospitality and leisure industries will continue in 2025/6 up to a cap of £110,000 per business.
Corporate Tax Roadmap to be published today - CT to be kept at 25%
Non-dom regime abolished from April 2025 with a new residence scheme
Carried Interest rate to increase from 2025 to 32%
Stamp Duty Land Tax - surcharge on 2nd homes from 31 October to increase to 5%
Energy Profits Levy to increase
VAT on private education from January 2025 and business rates relief to be removed.
Tax relief for visual effect costs.
Right to Buy discounts to be reduced - so buying a council house will cost more.

Spending

Funding for those affected by the inflected blood scandal
Funding for the Post Office horizon scandal
£70bn of investment through a National Wealth Fund
Creating Skills England
Crackdown on fraud in welfare claims, including direct access to bank accounts
New Get Britain Working white paper to tackle those who are economically inactive
Modernise HMRC with new technology and extra staff
Carers allowance to increase by largest amount since its inception
Household support scheme to be enhanced next year
State pension triple lock - 4.1% increase in 2025
Pension credit will also rise by 4.1%
New path to spending 2.5% of GDP on defence at a future fiscal event. Next year, the defence budget will rise by £2.9bn, with an additional £3bn a year for Ukraine “for as long as it takes”.
HS2 will be extended to London Euston Station
£22.6bn increase in the NHS budget over the next two years (but happens then?)