2024 Autumn Budget

Let’s dive in and make sense of what the budget means for your finances today and in the years to come.

As the leaves turn and we head into the cooler months, it’s not just nature going through changes—so is the financial landscape. The UK’s Autumn Budget 2024 has landed, and with it comes a host of updates that could affect your income, investments, and future plans.

This year’s budget, delivered by Chancellor Rachel Reeves, is particularly noteworthy, with measures aimed at balancing economic challenges while investing in public services. Whether you’re looking to maximise tax efficiency, grow your wealth, or simply stay ahead of policy shifts, understanding the key takeaways is essential.

For clients like you, planning ahead is everything. The changes to National Insurance, Capital Gains Tax, and inheritance planning could mean new opportunities—or pitfalls to avoid. With this blog, we’ll cut through the noise and highlight what matters most to your financial strategy, ensuring you’re well-prepared for 2025 and beyond.

Our Key Takeaways from the UK Autumn Budget

The UK Autumn Budget 2024, presented by Chancellor Rachel Reeves, introduced significant measures aimed at addressing fiscal challenges while maintaining public services. Below are the key highlights and their implications:

1. Changes to Taxes

National Insurance Contributions (NICs): Employer NIC rates will increase to 15% from April 2025, with the earnings threshold lowered from £9,100 to £5,000. While this aims to generate £25 billion annually, small businesses could benefit from a doubled Employment Allowance, now £10,500​

Capital Gains Tax (CGT): Rates for basic and higher taxpayers will rise to 18% and 24%, respectively, while residential property rates remain unchanged. Business owners may also face higher CGT on asset disposals in upcoming years​

2. Inheritance and Pension Adjustments

Inheritance Tax (IHT): Relief on agricultural and business property is capped at £1 million for full relief, with excess taxed at 50%. Additionally, pension death benefits will be subject to IHT starting in 2027​

Threshold Freezes: IHT and personal income tax thresholds remain frozen, extending fiscal drag until 2028​

3. Minimum Wage Increase

The National Minimum Wage will rise by 6.7% to £12.21 per hour for workers aged 23 and over from April 2025, with younger age groups seeing an even higher percentage increase​

4. Public Services and Green Initiatives

NHS Funding: An additional £1.5 billion has been allocated to reduce waiting times and improve service quality.

Green Investments: The budget includes funding for renewable energy projects and Carbon Capture and Storage (CCS) to support the UK’s net-zero goals​

5. Support for Families

The child benefit threshold will increase to £60,000, offering relief to households with moderate incomes. Additionally, there is a freeze on fuel duties for the next year to ease living costs​

Implications for Individuals and Businesses

For individuals, the budget promises relief through wage increases and improved healthcare funding. However, tax freezes and rising CGT rates could mean careful financial planning is needed. For businesses, the higher NIC rates may require strategic adjustments, despite increased allowances for smaller firms.

The 2024 Autumn Budget reminds us that change is the only constant in the financial world. From rising National Insurance costs to new tax rates and shifts in inheritance planning, these updates highlight the importance of staying proactive.

For you as clients, this is a time to reflect on your long-term goals and ensure your plans are still on track.

While some changes may present challenges, others open doors to new opportunities. The key is to navigate them with confidence and strategy. Whether it’s reviewing your investment approach, exploring tax-efficient solutions, or planning for the next generation, this budget underlines the value of expert guidance.

The LSG Financial Team is here to help you make sense of these changes and turn them into steps forward. Let’s work together to adapt and thrive, no matter what the future holds.