Businesses
- Employer’s NI Contributions will increase from 13.8% to 15% from April 2025. And the threshold at which employer’s NIC becomes payable falls from £9,100 to £5,000
- Employment Allowance to increase from £5,000 to £10,500.
- Business Corporation Tax remains at 25%
- Existing 40% relief on business rates for retail, leisure and hospitality will continue in 2025/26 up to a cap of £110,000 per business
- Extending the Enterprise Investment Scheme to 2035
Individuals
- Capital Gains Tax rates will increase from 10% to 18% and the higher rate from 20% to 24%. CGT on residential property remains unchanged.
- Non-domicile tax regime will be abolished from and replaced with a new residence scheme from April 2025
- IHT frozen until 2029/30 – £325,000 to be inherited tax free.
- From April 2027 inherited pension to be included in IHT
- Personal tax thresholds on income tax and national insurance remain frozen until 2027/28
- From October 31, 2024 an increase of Stamp Duty from 3% to 5% applies to purchases of second homes, buy-to-let residential properties and companies purchasing residential property.
Employment
- National Living Wage will increase to £12.21 per hour for over 21’s (£1,400 a year for an eligible full-time worker)
- Also, from April 2025 the NLW for 18-20 year olds will be increased to £10.00 per hour
- A move to a single adult NLW to be phased in over time
- Carer’s Allowance weekly earnings limit raised to the equivalent of 16 hours at NLW
- Employment Protection against Unfair Dismissal
General
- Fuel Duty – remains frozen
- January 2025 VAT on private school fees
- Air Passenger Duty
- Increase by up to £2 for an economy class short haul flight.
- Private jets will attract an extra 50% air passenger duty (up to £460 per passenger for a flight)
Contact
If you would like to discuss anything from the budget in detail, please do not hesitate to contact Gary Eves, Director ([email protected]) or Ed Mo, Director ([email protected]).