Budget 2024
Our experts give their insights on the Budget and how changes could impact your money.
Key points from the Autumn Budget:
National Insurance: rise in contributions for employers from April 2025
- Capital Gains Tax: rates payable on sales of shares have been hiked from 10% to 18% and on anything that falls below £50,270, and from 20% to 24% at the higher rate
- Pensions: to be subjected to Inheritance Tax from April 2027
- Income tax: thresholds frozen until 2028
- AIM shares: to attract an inheritance tax rate of 20% if they are held for two years
- VAT on private school fees
- ISA allowances: frozen at current levels until April 2030
- State pension: will rise an inflation-beating 4.1% from April
Labour’s first Budget in 14 years was an historic one. After months of speculation, Chancellor Rachel Reeves delivered a package of measures that she says will raise taxes by £40 billion.
There’s a huge focus on economic growth which means the government will “invest, invest, invest”. But investing costs money, and the chancellor has used the country’s tax system to bankroll Labour’s spending plans.
However, the consensus appears to be that it “could have been worse”. That’s because speculation ahead of the announcement had certain tax rates rising way in excess of where they’ve ended up, while many feared more punitive measures aimed at pension savers. Now it’s over to Keir Starmer and the new Labour administration to prove to the electorate that they can spend their windfall wisely.
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