Summary of the 2024 Budget

Pensions

• To be brought into your estate from April 2027. Depending on your personal circumstances this could mean a tax bill of 40% on your pension.

Inheritance tax

• Nil rate band frozen until 2030 – currently £325,000 plus £175,000 if you own a property and are leaving it to direct descendants.

Business property relief (BPR)

• From April 2026 Agricultural relief and BPR are limited to £1m. Thereafter, 50% relief, therefore the rate will be 20% instead of 40%

AIM investments

• From April 2026 get 50% relief for inheritance tax so a 20% rate instead of 40%.

Business asset disposal relief

• Still limited to £1m
• Now 10% rising to 14% in April 2025 and then 18% in April 2026.

Capital gains tax

• Rate increased from 10% to 18% for basic rate taxpayers
• The rate increased from 20% to 24% for high and higher-rate taxpayers
• Residential properties at 18% and 24%
• Allowance remains at £3,000 per annum

Stamp duty

• Additional homes – Increased to 5% (from 3%) on top of the normal rate

Employers NI

• Raised to 15% from 13.8%
• The lower earnings limit for paying employer NI reduced from £9,100 to £5,000
• To help protect smaller employers from the increase in NIC, the amount of the employment allowance will be increased from £5,000 to £10,500 per year from 6 April 2025. Eligible employers can offset the employment allowance against their NIC liability, potentially reducing it to £nil.

VCT and EIS investment

• Reliefs to remain the same.

ISA allowances

• Remain the same until 2030

Finally, the information contained in this article is for information purposes only and does not constitute financial advice. No action should be taken based on this information alone. Anstee & Co is authorised and regulated by the Financial Conduct Authority (FCA).