The Autumn Statement - https://www.naomihaynes.co.uk/article/detail/2024/november/autumn-statement.html 

What happened, what does it mean and what can I do?

A business-owner’s guide to the recent budget

 EMPLOYER'S NATIONAL INSURANCE

What happened?

• Employer National Insurance increased from 13.8% to 15% (from April 2025)

• Threshold dropped for employers from £9,100 to £5,000 (from April 2025)

• Employment Allowance increased from £5,000 to £10,500 (from April 2025)

What does it mean

• If you have a Limited company and/or have an employee – payroll just got more expensive

• Employment Allowance raise could lead to lower National Insurance costs, but this is not for you if –

o You are a sole trader

o You are a limited company without 2 or more directors earning above the secondary threshold for National Insurance

What can I do?

• Discuss with Accountant / Bookkeeper about split between dividends /salary for directors

• Pensions – Salary Sacrifice

o Employers: If you have an employee look at moving their pension contributions to salary sacrifice

o Limited Companies: Pay more into your pensions

CAPITAL GAINS TAX

What happened?

• Capital Gains Tax (CGT) increased from 10% to 18% (for basic rate taxpayers) and from 20% to 24% (for higher and additional rate taxpayers)

What does it mean

• If you sell any assets (non-residential additional properties) and make a profit above £3,000, you will be paying more in Capital Gains Tax

• If you ever want to sell your business in the future, the rates of CGT also went up –

o Businesses usually qualify for Business Asset Disposal Relief, whereby you only pay CGT at the lower rate on the first £1million of gains

o This rate just went up from 10% to 18% (gradually increasing from April 2025 to April 2026)

What can I do?

• Maximise Allowances: Any investments – make sure you maximise use of your ISA allowance and pension allowance every year (no CGT paid within either of  these)

• Married Couples / Civil Partners: Sharing ownership of assets before sale will double allowances available

• Pensions: If you have a Limited Company - You can transfer assets from your business into your pension without any taxes at all (up to relevant allowances)

• Tax Efficient Investments: Speak to a Financial Adviser (like myself) who can advise you on investments that can defer your CGT liabilities

INHERITANCE TAX

What happened?

• Inheritance Tax rate remains at 40%

• Frozen Inheritance Tax Thresholds extended to 2030

• £1million limit on Business Property and Agricultural Relief (with excess only receiving 50% relief)

• AIM Share Relief reduced from 100% to 50%

What does it mean

• More estates will be paying Inheritance Tax

• Family run businesses will see large increases in Inheritance Tax that needs to be paid as the business is passed through the family

What can I do?

• Married Couples: Passing from one spouse (or civil partner) to another will not incur Inheritance Tax

• Professional Advice: Seeking help around this is essential to avoid forced “fire sales” of family-run businesses

PENSIONS

What happened?

• For most pensions, death benefits will be included in Inheritance Tax charges and calculations (proposed from April 2027)

What does it mean

• Many more estates will be paying Inheritance Tax

What can I do?

• Many people did not even know that pensions are (currently) not included in estates for Inheritance Tax purposes

• Pensions are very tax efficient ways to save for YOUR FUTURES

• Financial planners help people through their retirement to ensure they do not run out of money

• This does not mean you should stop or reduce your contributions into a pension, or think any less of them!

OTHER CHANGES

What happened?

• Stamp Duty Land Tax

o The Stamp Duty Land Tax has been increased for second homes from 3% to 5% (from 31 October 2024)

o First time buyers will see a reduction in the threshold when they start to pay this tax - from £425,000 to £300,000 (from April 2025)

o First time buyers relief only available on properties up to £500,000

• Carer’s Allowance

o For anyone receiving Carer’s Allowance, the earnings limit has been increased by £45 per week and is now around £10,000 per year.

WHAT DO YOU THINK?

• This highlights the value of professional advice

• There are many unintended consequences after the above –

o People living too long (aka running out of money in retirement)

o Not selling assets

o Not being able to pass family-run businesses down the generations

o Less rental properties on the market / higher rents

o Not saving for retirement

o Hiring / paying less

Don’t be caught in the trap… Don’t hide from the news….

There are people who can help

NEED HELP?

Speak to a professional – like me

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The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.