The Autumn Budget

Chancellor of the Exchequer, Rachel Reeves, announced Labour’s first Budget in nearly 15 years, with it arguably being the most politically and economically significant in recent years.

Earlier this week, Sir Keir Starmer had stated that this Budget will focus on stability, investment and reform. However, he also went on to say that rebuilding Britain and delivering growth will require tough decisions, but getting Britain working again will contribute to economic growth in the long-term and benefit everyone across the country.

There has been much speculation in the press as to what Rachel Reeves would announce in her first Budget such as reducing the amount of tax-free cash permitted, introducing NI on employers’ pension contributions as well as bringing pension pots into the inheritance tax regime.

Here are the main points from today’s Budget announcement:

No decrease announced in the tax-free cash limits from pensions.

Inheritance tax - Pensions will be brought into the Inheritance Tax Regime from April 2027.

Capital Gains Tax - The lower rate of CGT will increase from 10% to 18% and the higher rate will increase from 20% to 24% from 30 October 2024.

National Insurance contributions for employers will increase by 1.2% to 15% from April 2025. In addition to this, the threshold at which it is paid has been cut from £9,100 per year to £5,000.

Personal Tax - no increases in income tax, national insurance or VAT. Additionally, the tax thresholds which were frozen by the Conservative government will start to increase again by the rate of inflation in 2028/29.

State pension: The state pension will rise by 4.1% in April 2025 and maintain the state pension triple lock.