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Key budget 2024 announcements from FBTC

Here are our main takeaways from the Autumn Statement.

Making Tax Digital

• Lower the threshold at which point an individual must submit information quarterly to HMRC from £30,000 to £20,000. Coming into force before the end of this parliament. More information to follow once available.  

Income Tax

• No change to tax rates,
• Personal Allowance frozen,
• Tax bands frozen until 28/29,

National Insurance

• Class 2 and 3 to increase based on CPI from 25/26,
• Class 1 and 2 thresholds to increase by CPI from 25/26,
• Employers NIC increased to 15% From April 2025.
• Secondary threshold lowered from £9,100 to £5,000 From April 2025
• Employers Allowance increase from £5,000 to £10,500

VAT

• No Change to VAT rate,
• No Change to Registration threshold,
• Private school now have to pay VAT on fees,

Corporation Tax 

• No Change to Rates,

Capital Gains Tax 

• Increase to main rate from 10% to 18%,
• Increase to higher rate from 20% to 24%,
• Tax on assets qualifying for Business Asset Disposal Relief to increase to 14% from April 2025 and 18% from April 2026,

Stamp Duty Land Tax

• Additional SDLT charge for additional dwelling increased from 3% to 5%,
• Increase to rate paid by companies and non-natural persons from 15% to 17%,

Furnished Holiday Let

• Furnished Holiday regime removed from April 2025,

Inheritance Tax

• No Change to Rate of thresholds,
• Unused pensions to be included in estate from April 2027,
• APR and BPR capped at £1 million at 100%, remaining at 50% relief.

Fuel Duty

• No change to fuel duty,
• 5p cut to remain in place until March 2026,

The more unusual stuff

• Air passenger duty on private Jets increase by 50%,
• Tobacco duty up,
• New duty on Vapes,
• Vehicle excise duty to increase with RPI,
• New Vehicle excise duty for low CO2 emission cars,
• No change to ISA limits,
• British ISA scrapped,
• All Benefits in Kind to be payrolled from April 26,
• High Income Child Benefit Charge to remain repayable on income over £50,000, although can now be collected through PAYE Code,
• HMRC late payment interest goes up by 1.5%.