--- title: "Autumn Budget 2024: What does it mean for you?" description: The Autumn Budget 2024 has been announced. The team at Beacon Wealth Management explain how these updates may affect you. image: https://beaconwm.co.uk/hubfs/social%20version%20of%20header%20image%20(6).png --- [🔒 Personal Finance Portal](https://beaconwm.gb.pfp.net/) [![Beacon Wealth Management](https://beaconwm.co.uk/hs-fs/hubfs/brand-logos/bwm-logo_791x500.jpg?width=791&height=500&name=bwm-logo_791x500.jpg "Beacon Wealth Management")](https://143955714.hs-sites-eu1.com/) [![Beacon Wealth Management](https://beaconwm.co.uk/hs-fs/hubfs/brand-logos/bwm-logo_791x500.jpg?width=791&height=500&name=bwm-logo_791x500.jpg "Beacon Wealth Management")](https://143955714.hs-sites-eu1.com/) - What we offer - [Planning](https://beaconwm.co.uk/planning) - [Retirement & Pensions](https://beaconwm.co.uk/planning#pensions) - [Passing on Wealth](https://beaconwm.co.uk/planning#wealth) - [Health & Protection](https://beaconwm.co.uk/planning#protection) - [Long-Term Care](https://beaconwm.co.uk/planning#care) - [Divorce](https://beaconwm.co.uk/planning#divorce) - [Mortgages](https://beaconwm.co.uk/planning#mortgages) - [Investing](https://beaconwm.co.uk/investing) - [Why invest with us](https://beaconwm.co.uk/investing#why-invest) - [Our Portfolios](https://beaconwm.co.uk/investing#our-portfolios) - [Business](https://beaconwm.co.uk/business) - [Employee Benefits](https://beaconwm.co.uk/business#Employee-Benefits) - [Workplace Pension](https://beaconwm.co.uk/business#Workplace-Pension) - [Business Protection](https://beaconwm.co.uk/business#Business-Protection) - [Corporate Planning](https://beaconwm.co.uk/business#Corporate-Planning) - [Who we help](https://beaconwm.co.uk/who-we-help) - [How it works](https://beaconwm.co.uk/how-it-works) - [Who we are](https://beaconwm.co.uk/who-we-are) - [Insights & News](https://beaconwm.co.uk/insights-and-news) - [Contact us](https://beaconwm.co.uk/contact-us) - [01480 869466](callto:+441480869466) This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. # Autumn Budget 2024: What does it mean for you? News 30 October 2024 | 3 minute read by Beacon Wealth Management ## Chancellor Rachel Reeves has delivered [her first Budget](https://www.gov.uk/government/speeches/autumn-budget-2024-speech), unveiling changes in Tax, National Insurance, and Inheritance rules. The team at Beacon Wealth Management explain how these updates may affect you. #### **Personal Tax Thresholds** From 2028-29, income tax thresholds will rise with inflation, helping to reduce "fiscal drag," which pulls more taxpayers into higher brackets due to inflation. This shift aims to stabilise tax liabilities over time, particularly for middle-income earners. #### **Increase in Employer National Insurance Contributions** In April 2025, Employer National Insurance (NI) contributions will increase from 13.8% to 15%, with the contribution threshold lowered from £9,100 to £5,000. To counter this, the Employment Allowance for employers will rise to £10,500, partially offsetting the extra costs. Businesses should review payroll budgets given these changes. “Reducing the qualifying amount to £5,000 will be difficult for small employers,” says Tony Larkins, MD at Beacon Wealth Management. “To hire someone on £30,000 per year, it will cost the employer an additional £865.80.” #### **Business Rates Adjustment** In 2025, the 75% discount in business rates will end, replaced by a 40% discount with a £110,000 cap. #### **Higher Capital Gains Tax (CGT) Rates** CGT rates will rise, with the lower rate increasing from 10% to 18% and the higher rate from 20% to 24%. “This will hurt savers,” says Tony, “particularly given the recent growth in investments. Investors may want to review their portfolios to minimise potential CGT liabilities.” Residential property CGT rates, meanwhile, remain at 18% and 24%. #### **Inheritance Tax (IHT) Adjustments** The Inheritance Tax threshold freeze extends to 2030, and from April 2027, pensions will be subject to IHT as well. “Including inherited pensions into estates is concerning,” says Tony. “It may even reduce the Residential Nil Rate Band or wipe it out, creating a far higher tax liability for pensioners. People may need to consider deeds of variation or a re-think of beneficiaries to address these changes.” For combined business and agricultural assets, a £1 million threshold will apply before IHT is charged at an effective 20% rate. The IHT relief on AIM-listed shares drops from 100% to 50%. “AIM shares are not a flexible investment, so new investments in them could go down,” Tony adds. #### **Carried Interest CGT Increase** Capital Gains Tax on carried interest—profits fund managers earn—will increase to 32%. #### **Private School VAT Exemption Ends** From January 2025, private school fees will be subject to VAT, and business rate relief for private schools will end, making private education more expensive. #### **Non-Domicile Tax Status to be Abolished** The non-domicile (non-dom) tax status will end in April 2025, impacting UK residents who claim overseas residency for tax purposes. A new, residence-based system will replace it, focusing on temporary UK residents. #### **Higher Stamp Duty on Second Homes** The Stamp Duty surcharge on second homes has risen from 3% to 5%, adding costs for those buying second properties or buy-to-lets. The stamp duty thresholds for the purchase of second homes will be subject to further changes in April 2025. #### **Continued Electric Vehicle Incentives and Changes to Air Duty** Incentives for electric vehicles will stay until 2028 in company car tax schemes, promoting green investments. Air duty will rise no more than £2 for commercial passengers, with a 50% increase for private jet passengers. #### **Rise in National Living Wage (NLW)** The NLW for over-21s will increase by 6.7% to £12.21 per hour, with similar rises for younger workers and apprentices. “Paired with the reduction in when employer NI will start to be paid, employers may respond to these changes by reducing the hours of their part-time workers,” says Tony. #### **Enhanced Carer's Allowance** The Carer’s Allowance income threshold will increase, allowing carers to earn over £10,000 without impacting benefits. An independent review will address overpayment concerns, providing assurance to carers. #### **Increased Windfall Tax on Energy Companies** The windfall tax on oil and gas profits will rise to 30% and stay in place until 2030, with the previous 29% investment allowance removed, affecting energy sector companies. *We will continue to monitor developments, but if you have any questions or concerns about your situation following the announcements, you can reach us on 01480 869 466 or email [info@beaconwealth.co.uk](mailto:info@beaconwealth.co.uk)*. *Future fees may apply. Registered and regulated by the FCA No. 526604.* ## Latest insights and articles [Planning](https://beaconwm.co.uk/insights-and-news/tag/planning) ##### Is Life Complicated? 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