The UK Autumn Budget 2024 introduces a wide range of tax and policy changes affecting individuals, landlords, entrepreneurs, and investors. While some widely rumoured tax rises were avoided, several measures will increase tax liabilities, either immediately or over the next two years.
This breakdown highlights the most important changes, what they mean in practice, and where forward planning is now essential.
Key Measures Impacting Businesses and Individuals
- Employer National Insurance Increase
Effective from April 2025
- Employer NIC rate increases from 13.8% to 15%
- Secondary threshold reduced from £9,100 to £5,000
Impact:
Businesses will start paying NIC earlier on employee salaries, increasing payroll costs. This disproportionately affects SMEs and labour-intensive businesses and may influence hiring and salary strategies.
- Business Asset Disposal Relief (BADR)
Effective April 2025 and April 2026
- BADR rate increases:
- 10% → 14% (April 2025)
- 14% → 18% (April 2026)
- £1 million lifetime allowance remains unchanged
Impact:
This reduces the tax advantage of selling a business and narrows the gap between BADR and standard CGT rates, potentially affecting exit planning for entrepreneurs.
- Capital Gains Tax (CGT) Increase
Effective from 30 October 2024
- Lower CGT rate increases to 18%
- Higher CGT rate increases to 24%
- Residential property CGT rates remain unchanged
Impact:
Higher CGT reduces net investment returns. Investors may increasingly use ISAs, pensions (SIPPs) and other tax-efficient wrappers to mitigate exposure.
- Freeze on Income Tax, NIC & VAT Allowances
Extended until April 2028
- Personal allowance and tax bands remain frozen
- No increase in thresholds despite inflation
Impact:
This continues fiscal drag, pulling more individuals into higher tax bands over time. The freeze ends in 2028, when allowances are expected to rise with inflation.
- Employment Allowance Increase
Effective from April 2025
- Allowance increases from £5,000 to £10,500
- £100,000 eligibility cap removed
Impact:
Up to 865,000 employers will pay no employer NICs, helping small businesses offset the NIC rate increase.
- Carried Interest Tax Increase
Effective from April 2025
- CGT on carried interest increases to 32%
Impact:
Private equity and fund managers will face higher effective tax rates, potentially influencing remuneration structures and fund location decisions.
- Abolition of the Non-Dom Tax Regime
Effective from 6 April 2025
- Remittance basis abolished
- Replaced with a residence-based regime
- Temporary Repatriation Facility extended to three years
Impact:
This is one of the most significant reforms in decades. While transitional relief exists, the UK may become less attractive to internationally mobile high-net-worth individuals.
- Stamp Duty Land Tax (SDLT) on Second Properties
Immediate effect – 31 October 2024
- SDLT surcharge increases from 3% to 5%
Impact:
Buy-to-let and second-home purchases become more expensive, potentially affecting rental supply and investor demand.
Additional Measures from the Finance Bill 2024–25
Savings & Personal Tax
- £5,000 0% Starting Rate for Savings retained for 2025–26
Inheritance Tax (IHT)
- Nil-rate and residence nil-rate bands frozen until 2030
- Pension death benefits included in IHT from 2027
Corporation Tax
- Main rate maintained at 25%
- Small profits rate and marginal relief unchanged
Energy Profits Levy (EPL)
- Increased to 38% from 1 November 2024
- Sunset clause extended to 2030
Property & Land
- SDLT surcharge for:
- Second homes: 5%
- Companies buying high-value property: 17%
- Furnished Holiday Let (FHL) regime abolished from April 2025
Duties & Indirect Taxes
- Tobacco duty rises 2% above inflation
- Air Passenger Duty increases from 2025–26
- Vaping products duty introduced from 2026
Creative & Innovation Reliefs
- 39% enhanced VFX tax credit from April 2025
- R&D relief reforms and revised intensity thresholds
Consultations & Policy Reviews
- High-Income Child Benefit Charge (HICBC): Simplified reporting and data sharing
- NIC relief for veterans: Extended to 2026
- Carbon Border Adjustment Mechanism (CBAM): From January 2027
- IHT on pensions: Further consultation ahead of 2027 changes
Immediate-Effect Changes Summary
The following measures are already live:
- CGT increases – 30 October 2024
- SDLT surcharge increase – 31 October 2024
- Energy Profits Levy reform – 1 November 2024
Business & Sector-Specific Support
- £1bn for aerospace
- £2bn+ for automotive manufacturing
- £520m for life sciences manufacturing
- Innovation Accelerators extended to 2025–26
- Glasgow City Region
- Greater Manchester
- West Midlands
Summary: What This Budget Means
The Autumn Budget 2024 delivers a clear shift towards higher effective taxation, particularly on:
- Capital gains
- Property investment
- International wealth
- Employment costs
At the same time, targeted reliefs and allowances continue to support small businesses, innovation, and investment, provided planning is done early and efficiently.
With multiple changes taking effect immediately and others phased through 2026–2028, proactive tax planning is now essential for individuals and businesses alike.
