Key Points from the Autumn Budget:
Company changes:
National Insurance on employers will rise by 1.2% to 15% on salaries above £5,000 from April 2025
The Secondary Threshold, the level at which employers start paying national insurance on each employee’s salary, will be reduced from £9,100 per year to £5,000
Employment Allowance will rise from £5,000 to £10,500
Main rate of corporation tax, paid by businesses on taxable profits over £250,000, to remain at 25%
The government will introduce permanently lower business rates for retail, hospitality and leisure businesses from 2026-27. Until then they will receive 40% relief on business rates up to a cap of £110,000
Individual Changes:
INDIVIDUALS
Rates of income tax, National Insurance (NI) paid by employees and VAT, to remain unchanged
Income tax band thresholds to rise in line with inflation after 2028
Basic rate capital gains tax on profits from selling shares to increase from from 10% to 18%, with the higher rate rising from 20% to 24%
Capital Gains Tax rates on carried interest will be increased from 28% to 32% from April 2025 with further reforms the following year
24% CGT rate on profits from selling additional property unchanged
VAT on private school fees will be introduced from January 2025, with legislation soon to remove their business rates relief from April 2025
The non-dom tax regime will be abolished
Inheritance tax threshold freeze extended by further two years to 2030, with unspent pension pots also subject to the tax from 2027
Minimum wage for over-21s to rise from £11.44 to £12.21 per hour from April
Minimum wage rate for 18 to 20-year-olds to rise from £8.60 to £10.00 per hour from April
Minimum wage for under 18 and apprentice to rise from £6.40 to £7.55 an hour from April
Basic and new state pension payments to go up by 4.1% next year due to the “triple lock”
Eligibility widened for the allowance paid to full-time carers, by increasing the maximum earnings threshold from £151 to £195 a week
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