31/10/2024
Key Points from the UK Budget 2024
Taxation:
Increased National Insurance: Employers' National Insurance Contributions (NICs) will increase by 1.2 percentage points to 15% from April 2025.
Reduced National Insurance Threshold: The secondary threshold for NICs will be reduced from £9,100 to £5,000.
Increased Capital Gains Tax: the main rates of Capital Gains Tax that apply to assets other than residential property and carried interest from 10% and 20% to 18% and 24% respectively, for disposals made on or after 30 October 2024
Inheritance Tax Freeze: The Nil-rate Band for IHT will be frozen until 2030.
Inherited Pensions: Inherited pensions will become subject to IHT from April 2027.
Public Spending:
Increased NHS Funding: A £22.6bn increase in the day-to-day health budget and £3.1bn increase in the capital budget.
Increased Education Funding: £6.7bn of capital investment for education, including £1.4bn for school rebuilding.
Increased Local Government Funding: £1.3bn for additional grant funding, including £600m for social care.
Increased Housing Investment: £5bn for housing investment in 2025-26.
Other Measures:
Minimum Wage Increase: The national living wage will increase by 6.7% to £12.21.
VAT on Private School Fees: VAT will be introduced on private school fees from January 2025.
Fuel Duty Freeze: Fuel duty will remain frozen for another year.
Alcohol Duty: A cut in draught duty by 1.7%.
Vapes and To***co: Increased taxes on vapes and to***co.
Overall, the Budget aims to balance economic growth with social spending. It prioritizes public services, particularly the NHS and education, while also introducing measures to address social inequalities and environmental challenges.
