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Budget 2024

Our experts give their insights on the Budget and how changes could impact your money.

ii-Robots-plain

Key points from the Autumn Budget:

  • National Insurance: rise in contributions for employers from April 2025

  • Capital Gains Tax: rates payable on sales of shares have been hiked from 10% to 18% and on anything that falls below £50,270, and from 20% to 24% at the higher rate
  • Pensions: to be subjected to Inheritance Tax from April 2027
  • Income tax: thresholds frozen until 2028
  • AIM shares: to attract an inheritance tax rate of 20% if they are held for two years
  • VAT on private school fees
  • ISA allowances: frozen at current levels until April 2030
  • State pension: will rise an inflation-beating 4.1% from April

Labour’s first Budget in 14 years was an historic one. After months of speculation, Chancellor Rachel Reeves delivered a package of measures that she says will raise taxes by £40 billion.

There’s a huge focus on economic growth which means the government will “invest, invest, invest”. But investing costs money, and the chancellor has used the country’s tax system to bankroll Labour’s spending plans.

However, the consensus appears to be that it “could have been worse”. That’s because speculation ahead of the announcement had certain tax rates rising way in excess of where they’ve ended up, while many feared more punitive measures aimed at pension savers. Now it’s over to Keir Starmer and the new Labour administration to prove to the electorate that they can spend their windfall wisely.

Lee Wild

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These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest.