30/10/2024
💷💷💷Budget 30.10.2024💷💷💷
Well, another entertaining budget has been delivered, full of cheers and digs within the House of Commons.
The main message is: Restore economic recovery, support working people, focusing on stability and investment.
Stability rule: bring current budget to balance to not borrow to meet spending, to be met by 2029/30.
💷💷Focuses being:💷💷
🟡 Local growth plans, greater control to local government.
🟡 Skills England: tackling inactivity and delivering training
🟡 Modern industrial strategy, R&D funding science base, clean energy
🟡 Modernising HMRC!! Appointing more staff
🟡 Clamping down on umbrella companies
🟡 Raise interest for late payments to HMRC, investigate covid funding
🟡 Tackling fraud: tax, welfare etc.
💷💷Decisions made:💷💷
🟢 Minimum wage £10ph for aged 18+, £12.21 aged 21+ (6.7% rise)
🟢 Carers allowance £81.90pw currently, increasing to 16hrs at living wage, so carer can earn £10k pa plus carer’s allowance
🟢 Hardship allowance £1m. 15% max debt collection from universal credit
🟢 Increased protection in the workplace.
🟢 Pension credit rise £11,850
🟢 Fuel duty: not increasing next year, frozen another year.
🟢 No NI rise, No VAT rise, no income tax increases for working people.
🟢 ER NI rise to 15% from April 2025, with secondary threshold cut for ER NI from £9,100 to £5,000. Employment allowance risen to £10,500, great for small companies.
🟢 Capital Gains Tax: lower rate increased to 18%, higher 20%-24%, same as residential rates which are not moving.
🟢 Limetime limit £1m for business asset disposal relief, 10% 24/25 - 14% 25/26 - 18% 26/27
🟢 Enterprise and venture capital relief remaining same to encourage growth.
🟢 Inheritance tax thresholds frozen until 2030, first £325k tax free. The closed loop hole inherited pensions brought into equations 2027
🟢 April 2026 first £1m agricultural assets no inheritance tax. 50% relief shares in alternative investment market.
🟢 Remained to***co, increased duty 10%, all va**ng liquid, additional smoking
🟢 Soft drinks levy. Cutting draught duty by 1.7% in pubs, cheaper pints
🟢 Electric vehicles incentives to remain, increased differentials from April 2025
🟢 Air passenger duty increased by around £2 per ticket for an economy ticket. Private plane duty increased by 50% £450 per passenger
🟢 26/27 business rates for retail, hospitality and leisure: 40% relief up to £110k per business
🟢 Small business tax multiplier frozen
🟢 Corporate tax roadmap. Capped 25% corporation tax. R&D relief same rates
🟢 Non-dom tax regime abolished. From April 2025 will be removed. Closing loop holes. Temp repatriation relief.
🟢 Carried interest 32% from April 2025, simpler rules from April 2026.
🟢 Stamp duty surcharge for 2nd homes up to 5% effective tomorrow.
🟢 Energy profit levy (windfall tax) to 38% to March 2030, investment allowance removed. 100% first year allowances remain.
🟢 Children 94% in state schools. VAT school fees from Jan 2025. Business rates relief removed from April 2025.
🟢 Income tax thresholds 2028/29 uprated in line with inflation
Summarised by Rachel Mougeot
