Autumn Budget 2024 Webinar - On Demand

For those of you who didn’t attend the post-Budget webinar, or if for some reason you want to listen to my dulcit tones for a second time, you can check out the recording above.

I have also summarised below the main headlines announced at the Budget and where changes have been made to legislation, when these will come into force.

If you have any questions regarding your individual situation, drop me a line at david@beechgrovefinancialplanning.co.uk or why not swing by our shiny new office at Thomas House, 84 Eccleston Square, Victoria, SW1V 1PX.

Let’s get into it.

The “Good”

- No change to the 25% “tax free cash” withdrawal entitlement from pensions (up to a maximum of £268,275).

- Income tax thresholds will rise in line with inflation from April 2028.

- No increases to income tax, VAT, employees’ national insurance, dividend tax and the top rate of corporation tax.

- Sale of primary residence remains exempt from Capital Gains Tax.

- Capital Gains Tax uplift on death remains in place.

- No employer national insurance is payable on pension contributions.

- Employment Allowance raised from £5,000 to £10,500.  £100,000 threshold removed.  Both changes will be brought in from April 2025.

- ISA allowances retained at current levels.

- British ISA idea canned.

The “Bad”

- Capital Gains Tax rates on share sales raised immediately to align with those for rental properties/second homes - 18% basic rate taxpayers and 24% for higher rate taxpayers.

- Business Asset Disposal Relief and Investor’s Relief rates rise to 14% from April 2025 and 18% from April 2026. Lifetime limit for Investor’s Relief reduced to £1m.  £1m lifetime limit for BADR remains in place.

- Inheritance Tax free thresholds (£325,000 nil rate band and £175,000 Residence Nil Rate band) are now frozen until April 2030.

- Inheritance Tax exemptions on Agricultural and Business assets limited to first £1m. 50% relief thereafter, so IHT charged at 20% on sums in excess of £1m. Both changes come into force from April 2026.

- Inheritance Tax relief on AIM stocks reduced by 50%, so IHT charged at 20% from April 2026.

- Employer’s National Insurance to be raised by 1.2% to 15% from April 2025.

- Threshold where employers must pay National Insurance will be reduced from £9,100 to £5,000 as of April 2025.

- VAT on private school fees introduced from January 2025.

- Stamp duty surcharge on second home/rental property purchases increased to 5% from 3% as of today.

The “Ugly”

- Pensions will be subject to Inheritance Tax from April 2027.

- No associated change to current rules on withdrawal of death benefits from pensions.

None of the above is intended to represent advice to any individual. If you require formal advice, please seek it from a regulated financial or tax adviser.