Employer NICs

The employer NICs rate will be increased from 13.8% to 15% from April 2025.

The threshold will be reduced from £9,100 to £5,000 per year.

Employment Allowance will increase from £5,000 to £10,500, helping small businesses reduce their NICs liability.

Capital Gains Tax

The CGT rates will increase from 10% to 18% for basic-rate taxpayers and from 20% to 24% for higher-rate taxpayers from April 2025.

There will also be a two-stage phased increase to the CGT rates for Business Asset Disposal Relief and Investors’ Relief, rising to 14% from April 2025 and then to 18% from April 2026. In addition the lifetime limit for Investors’ Relief will be reduced to £1 million for all qualifying disposals made on or after 30th October 2024.

From April 2026, Carried Interest will no longer be subject to CGT and instead become subject to Income Tax.

Inheritance Tax

From April 2027 most pension death benefits will be included in the estate for IHT purposes.

The government are trying to instil that pensions should be used as income in retirement and are looking to remove the incentive to use pensions as a tax planning vehicle for wealth transfer after death.

State Pension

Will rise by 4.1% from April 2025. The full new State Pension will increase from £221.20 to £230.25 per week.

Pension Transfers Overseas

From 30 October 2024, the government are removing the tax exemption that applies to the Overseas Transfer Charge for transfers to Qualifying Recognised Overseas Pension Schemes (QROPS) in the European Economic Area (EEA) and Gibraltar.

Other existing exclusions to the overseas transfer charge remain valid, such as transfers where the member is resident in the same country as the QROPS.

The government will bring in line the conditions of Overseas Pension Schemes (OPS) and Recognised Overseas Pension Schemes (ROPS) established in the EEA, with OPS and ROPS established in the rest of the world from April 2025.

Please click below to read the Autumn Budget 2024