Rachel Reeves, the Chancellor of the Exchequer, unveiled the 2024 Autumn Budget today, revealing an ambitious agenda to address a £22 billion black hole in public finances whilst investing in public services and attempting to stimulate economic growth.. Among the headline changes are adjustments to Inheritance Tax (IHT), employer responsibilities, Capital Gains Tax, and property taxes.
This blog breaks down these updates into key areas and assesses what they could mean for you, your business, or your family.
Inheritance Tax Changes in the Autumn Budget
The current Inheritance Tax thresholds remain frozen until 2030. Individuals can still pass on up to £325,000 worth of assets without incurring any charge to IHT. Married couples can combine their tax-free amounts, meaning that on the second death they can pass on up to £650,000 tax free.
You can still benefit from an additional tax free amount of £175,000 per person, which applies if your main residence is inherited by your children or grandchildren.
Though only 6% of households fall within IHT’s reach, the government has introduced notable changes to inherited pensions and agricultural relief. Beginning April 2027, inherited pensions will be caught by IHT, which will impact families counting on tax-free pension benefits.
Agricultural and business assets will also see shifts, with a cap allowing the first £1 million of these assets to be tax-free. For any assets beyond this threshold, an effective rate of 20% applies. This means that if your estate includes significant pension, agricultural, or business assets, planning with an adviser may be beneficial to understand how these new rules might affect the financial legacy you intend to pass on.
Changes Impacting Businesses and Employers
The Autumn Budget brings many changes for businesses of all sizes. While some measures aim to ease operational costs for smaller business, others will result in increased costs, especially in National Insurance and business rates.
The employer’s National Insurance rate will rise by 1.2%, reaching 15%, and the threshold at which employers pay National Insurance on each employee’s salary will be reduced significantly, from £9,100 to £5,000.
For many businesses, particularly those with larger payrolls, this increase translates to higher employment costs.
The Employment Allowance will rise from £5,000 to £10,500 which will exempt around 865,000 small businesses from paying National Insurance in 2025 and provide some relief for smaller employers who might otherwise struggle with the additional cost.
On business rates, hospitality, retail, and leisure sectors will see relief with the introduction of two lower permanent tax rates, beginning in 2026-27. These industries, which have faced considerable challenges in recent years, stand to benefit from reduced costs.
However, the higher multiplier applied to high-value properties will balance this relief, imposing greater contributions from properties with substantial assessed values.
Capital Gains Tax is also seeing a substantial change, though perhaps not as substantial as some as predicted. With immediate effect the lower rate of CGT will increase from 10% to 18%, while the higher rate moves from 20% to 24% bringing them in line with the rates applying to residential property (which will remain unchanged in respect of residential property).
Entrepreneurs and business owners will find that Business Asset Disposal Relief is being preserved at 10% for 2024 (as is the £1m lifetime limit), but the rate is set to rise to 14% in April 2025 and eventually 18% in April 2026. This increase means that business owners may need to reconsider their exit strategies or reinvestment plans.
Corporation tax, however, remains capped at 25%, maintaining stability for corporate tax planning.
Property Taxes: Impacts for Homebuyers, Sellers, Landlords, and Tenants
Homeowners, landlords, and prospective buyers face several updates. The most notable adjustment for property investors is the 2-percentage-point increase in the stamp-duty surcharge for second homes, bringing it to a total of 5%. This shift is likely intended to ease some pressure on the housing market, making primary residences more accessible by disincentivising additional property acquisitions.
For landlords, maintaining the Capital Gains Tax on residential property at 18% and 24% offers some stability in terms of investment planning. However, the continued rise in property values, coupled with the increased CGT on carried interest (reaching 32% in April 2025), suggests that landlords should be aware of growing tax liabilities on potential gains when planning for disposals
Looking Forward
The 2024 Autumn Budget reflects the government’s attempt to balance fiscal responsibility with support for small businesses, employees, and individuals managing estates and investments. By freezing IHT thresholds, revising National Insurance contributions, and adjusting CGT rates, the Chancellor has laid out a path that encourages individual and business resilience while generating revenue to address national priorities.
As we work together with clients to navigate these developments, our team at Slater Heelis is here to offer support that aligns with your personal and business goals. Whether you’re a business owner assessing new National Insurance impacts or an individual reviewing estate plans in light of IHT changes, we’re prepared to guide you through these shifts with confidence and clarity.
Should you wish to explore how any of these changes may impact your circumstances, please don’t hesitate to reach out. Simply fill out our online contact form or give us a call on 0330 111 3131.