In October 2024, Chancellor Rachel Reeves presented the UK’s Autumn Budget, introducing significant fiscal measures aimed at addressing economic challenges and funding public services. Key components of the budget include:

Taxation and Revenue Measures:

Tax Increases: The budget outlines £40 billion in tax hikes, marking the most substantial rise since 1993.

National Insurance Contributions (NICs): Employers’ NICs will increase from 13.8% to 15% on salaries above £5,000 starting April 2025, while employees’ NICs remain unchanged.

Capital Gains Tax (CGT): Effective immediately, the lower CGT rate rises from 10% to 18%, and the higher rate from 20% to 24%, aligning with rates on property sales.

Inheritance Tax: The threshold is frozen until 2030. From April 2027, pensions will be included in taxable estates, and from April 2026, agricultural property will have a £1 million exemption, with amounts above taxed at 10%.

Non-Domiciled Tax Status: The non-domiciled tax regime will end in 2025.

Wages and Social Support:

Minimum Wage: The National Minimum Wage will rise by 6.7% to £12.21 per hour from April 2025 for employees aged 21 years and above