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Breaking Down The 2024 Autumn Budget

Now the dust has settled, let's recap the Budget's core impacts on people and businesses

We’re thrilled to bring you the very first Double Point monthly newsletter — a quick, easy way to stay on top of the tax and accounting changes that really matter to you and your business.

This month’s focus? The recent Budget. It’s packed with big announcements, some surprising twists, and a little controversy.

From the increase of the Employment Allowance (EA) for small businesses to higher Capital Gains Tax (CGT) rates and new Inheritance Tax (IHT) rules, there’s a lot to unpack.

Let’s break it all down and take a closer look at the key updates you need to know.

National Insurance Contributions and Employment Allowance

The Budget’s headline announcement is increasing employer National Insurance Contributions (NICs) from 13.8% to 15%, effective from April 2025.

At first glance, this might seem like a straightforward cost hike for employers.

However, there's an upside — Employment Allowance is doubling from £5,000 to £10,500.

This particularly benefits smaller businesses, as many with NIC liabilities below £10,500 will now pay no employer NICs at all.

And for company directors who benefit from EA for their own salaries, it’s a chance to revisit salary and dividend strategies, taking full advantage of the new thresholds to maximise tax efficiency.

For the 2025/26 tax year, the optimal director salary level will differ from current practices — review your strategy if you think this applies to you.

Capital Gains Tax - Timing Matters More Than Ever

Capital Gains Tax (CGT) is the tax paid on the profit made when you sell or transfer certain assets — such as property, shares, or businesses. Depending on your income, you’re taxed at a basic or higher rate.

CGT rates are set to climb once more:

If you have assets to sell, be aware of the timing of changes and be proactive to avoid nasty surprises.

For years, families have relied on Business Property Relief (BPR) and Agricultural Property Relief (APR) to protect their businesses and farms from inheritance tax.

These reliefs allow qualifying assets to be passed on tax-free, ensuring they stay within the family. Right now, there’s no limit on how much of these assets can qualify for the full 100% relief.

But from 6 April 2026, the rules are changing. The government is capping the 100% relief at £1 million of combined business and agricultural assets per individual. Anything above this will only qualify for 50% relief instead.

You might already know that this is one of the most talked-about announcements from the recent budget.

It’s expected to have a massive impact on some family businesses and farms, prompting many to rethink how they structure ownership, transfer assets, or plan succession.

Keep an eye on this one — there’s growing pressure on the government to reconsider.

If it goes ahead as planned, farmers and some business owners will need to rebuild their succession plans virtually from scratch.

On top of the CGT hikes and IHT changes, property investors now have higher purchase costs to contend with due to changes in Stamp Duty Land Tax (SDLT).

From 31 October 2024, the surcharge on additional properties, like second homes and buy-to-let investments, has increased from 3% to 5%.

If you're buying through a company or other non-natural person and the property is worth over £500,000, the rate has gone up from 15% to a hefty 17%.

These changes mean property investors are looking at higher costs — not just when buying, but throughout the entire investment process.

Looking Ahead

It was never going to be a simple Budget, and only time will reveal the net impact on the economy and society large.

For now, thousands of businesses and people across the country will need to reconsider their tax strategies.

Need help? Let's talk about swerving impacts where we can and making the Budget’s changes work for you and your business.

Insights From Our Blog

We've been busy creating helpful articles to keep you informed and ahead of the game.

Our recent articles tackle everything from practical tax guides to deeper analysis of the latest Budget.

Some highlights from our latest posts:

We keep our blog updated with practical advice and timely insights.

Take a look — you might just find something that helps you make better financial decisions!

Questions? We’re here to help

Breaking Down The 2024 Autumn Budget

Now the dust has settled, let's recap the Budget's core impacts on people and businesses

We’re thrilled to bring you the very first Double Point monthly newsletter — a quick, easy way to stay on top of the tax and accounting changes that really matter to you and your business.

This month’s focus? The recent Budget. It’s packed with big announcements, some surprising twists, and a little controversy.

From the increase of the Employment Allowance (EA) for small businesses to higher Capital Gains Tax (CGT) rates and new Inheritance Tax (IHT) rules, there’s a lot to unpack.

Let’s break it all down and take a closer look at the key updates you need to know.

National Insurance Contributions and Employment Allowance

The Budget’s headline announcement is increasing employer National Insurance Contributions (NICs) from 13.8% to 15%, effective from April 2025.

At first glance, this might seem like a straightforward cost hike for employers.

However, there's an upside — Employment Allowance is doubling from £5,000 to £10,500.

This particularly benefits smaller businesses, as many with NIC liabilities below £10,500 will now pay no employer NICs at all.

And for company directors who benefit from EA for their own salaries, it’s a chance to revisit salary and dividend strategies, taking full advantage of the new thresholds to maximise tax efficiency.

For the 2025/26 tax year, the optimal director salary level will differ from current practices — review your strategy if you think this applies to you.

Capital Gains Tax - Timing Matters More Than Ever

Capital Gains Tax (CGT) is the tax paid on the profit made when you sell or transfer certain assets — such as property, shares, or businesses. Depending on your income, you’re taxed at a basic or higher rate.

Capital Gains Tax (CGT) is the tax paid on the profit made when you sell or transfer certain assets — such as property, shares, or businesses. Depending on your income, you’re taxed at a basic or higher rate.

If you have assets to sell, be aware of the timing of changes and be proactive to avoid nasty surprises.

For years, families have relied on Business Property Relief (BPR) and Agricultural Property Relief (APR) to protect their businesses and farms from inheritance tax.

These reliefs allow qualifying assets to be passed on tax-free, ensuring they stay within the family. Right now, there’s no limit on how much of these assets can qualify for the full 100% relief.

But from 6 April 2026, the rules are changing. The government is capping the 100% relief at £1 million of combined business and agricultural assets per individual. Anything above this will only qualify for 50% relief instead.

You might already know that this is one of the most talked-about announcements from the recent budget.

It’s expected to have a massive impact on some family businesses and farms, prompting many to rethink how they structure ownership, transfer assets, or plan succession.

Keep an eye on this one — there’s growing pressure on the government to reconsider.

If it goes ahead as planned, farmers and some business owners will need to rebuild their succession plans virtually from scratch.

On top of the CGT hikes and IHT changes, property investors now have higher purchase costs to contend with due to changes in Stamp Duty Land Tax (SDLT).

From 31 October 2024, the surcharge on additional properties, like second homes and buy-to-let investments, has increased from 3% to 5%.

If you're buying through a company or other non-natural person and the property is worth over £500,000, the rate has gone up from 15% to a hefty 17%.

These changes mean property investors are looking at higher costs — not just when buying, but throughout the entire investment process.

Looking Ahead

It was never going to be a simple Budget, and only time will reveal the net impact on the economy and society large.

For now, thousands of businesses and people across the country will need to reconsider their tax strategies.

Need help? Let's talk about swerving impacts where we can and making the Budget’s changes work for you and your business.

Insights From Our Blog

We've been busy creating helpful articles to keep you informed and ahead of the game.

Our recent articles tackle everything from practical tax guides to deeper analysis of the latest Budget.

Some highlights from our latest posts:

We keep our blog updated with practical advice and timely insights.

Take a look — you might just find something that helps you make better financial decisions!

Questions? We’re here to help

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