12/11/2024
The Chancellor of the Exchequer, Rachel Reeves, delivered her Autumn Statement on the 30th of October and here’s a brief update on some of the key points:
• Basic State Pension increase – the State Pension Triple Lock will be maintained for the duration of this parliament. Spending on the state pension is projected to rise 4.1% in 2025-26 – a £470 increase for over 12 million pensioners in the UK.
• Fuel duty – 5p cut will be maintained and fuel duty will continue to be frozen.
• To***co duty – the to***co duty escalator will be renewed at RPI +2%. Duty on hand-rolled to***co will increase by 10% this year, a flat-rate duty on all va**ng liquid will be introduced from 2026, and a one-off increase in to***co duty, to maintain the incentive for smokers to give up smoking.
• Alcohol duty – Draught duty will decrease saving 1p off a pint in the pub.
• Electric Vehicles – existing incentives for EVs will continue in company car tax from 2028.
• Carers allowance – will increase from £81.90 per week to the equivalent of 16 hours at the National Living Wage per week.
• VAT on private school fees – will be introduced from January 2025. And legislation is planned to remove business rates relief from schools from April 2025.
Tax rules can change and the impact of taxation, and any tax relief, depends on your personal circumstances.
If you have any questions about this, or anything else, please get in touch.
