The UK Autumn Budget 2024 introduces significant tax reforms and spending commitments that will affect individuals, employers, landlords and businesses over the coming years. From National Insurance changes and Stamp Duty increases to Capital Gains Tax reforms, National Living Wage rises, and increased investment in public services, the Budget aims to strengthen public finances while supporting economic growth.

Here’s a breakdown of the most important announcements and what they could mean for you.

Personal Tax Changes

Several personal tax measures will come into effect over the next few years.

Higher Late Payment Interest

From 6 April 2025, the late payment interest rate on unpaid personal tax liabilities will increase by 1.5 percentage points, rising from 7.5% to 9%. This applies to:

Income Tax
Capital Gains Tax (CGT)
National Insurance Contributions (NICs)

Paying tax liabilities on time will become increasingly important to avoid additional interest charges.

Income Tax Thresholds Remain Frozen

The government will continue freezing Income Tax and National Insurance thresholds until April 2028. As wages increase, more taxpayers may move into higher tax bands through fiscal drag.

ISA Limits Stay the Same

Annual subscription limits for:

Individual Savings Accounts (ISAs)
Lifetime ISAs
Junior ISAs

will remain unchanged until April 2030, providing continued tax-efficient saving opportunities.

Fuel Duty Changes

Motorists will continue to benefit from frozen fuel duty.

The government has:

Extended the 5p per litre temporary fuel duty cut until 22 March 2026
Cancelled the planned inflation-linked increase for 2025–26

This measure is intended to help households and businesses manage ongoing transport costs.

Air Passenger Duty (APD)

The Budget also includes changes to Air Passenger Duty (APD).

From 2026–27:

Short-haul economy flights will increase by £2 per passenger
Private jet APD rates will increase by 50%

These changes are designed to encourage more environmentally sustainable travel while increasing tax contributions from luxury aviation.

National Insurance Changes for Employers

One of the most significant announcements affects employer National Insurance.

From April 2025:

Employer NIC rates will increase to 15%
The secondary Class 1 NIC threshold will reduce from £9,100 to £5,000
Employment Allowance will increase from £5,000 to £10,500
More businesses will become eligible for Employment Allowance

While larger Employment Allowances will offset costs for many smaller employers, businesses with larger payrolls are likely to experience higher employment costs.

Salary Sacrifice Becomes More Attractive

With employer NIC costs increasing, salary sacrifice arrangements particularly pension salary sacrifice. It may become a more tax-efficient way to reward employees since pension contributions remain exempt from employer NIC.

National Living Wage and Minimum Wage Increases

The government announced substantial increases to both the National Living Wage (NLW) and National Minimum Wage (NMW).

National Living Wage (Age 21+)

From April 2025:

£12.21 per hour
A 6.7% increase
Equivalent to approximately £23,873 annually for a full-time employee

National Minimum Wage (Age 18–20)

The hourly rate will increase from:

£8.60
to £10.00 per hour

This represents a 16.3% increase, providing a significant pay rise for younger workers.

What Employers Should Consider?

Businesses should review:

Payroll systems
Employment contracts
Pay structures
National Minimum Wage compliance

Failure to comply can lead to financial penalties and reputational damage.

Stamp Duty Changes

The Autumn Budget introduces higher Stamp Duty charges for additional residential properties.

From 31 October 2024:

The surcharge on second homes increases from 3% to 5%
Company purchases of residential property above £500,000 will see the higher rate increase from 15% to 17%

The government hopes these measures will discourage speculative property investment while supporting home ownership.

Capital Gains Tax Changes

Capital Gains Tax rates on non-residential assets will increase.

New rates are:

18% for basic-rate taxpayers (previously 10%)
24% for higher-rate taxpayers (previously 20%)

Property investors and business owners planning asset disposals should review the timing of future transactions.

Inheritance Tax Changes

Inheritance Tax reforms include:

Nil-rate bands frozen until 2030
From April 2027, unused pension funds may become subject to Inheritance Tax under revised rules

Individuals with larger estates should consider reviewing their estate planning arrangements.

VAT on Private School Fees

From January 2025:

VAT will apply to private school fees
Business rates relief for private schools will end by April 2025

These measures are intended to raise additional funding for state education.

NHS Funding

Healthcare receives one of the largest spending commitments in the Budget.

Funding includes:

£22.6 billion additional NHS funding
£3.1 billion for NHS capital investment

The government expects this investment to support approximately 40,000 additional appointments each week, helping reduce waiting lists while preparing for a new 10-year NHS strategy.

Housing and New Homes

To address the UK’s housing shortage, the government plans to support the construction of 1.5 million new homes.

The Budget includes:

£5 billion of housing investment
Funding to improve housing affordability
Measures aimed at increasing housing supply

The objective is to expand access to affordable housing across the UK.

Education and Support for Carers

The Budget also includes increased investment in education and family support.

Key measures include:

Additional funding for school breakfast clubs
Increased investment in special educational needs (SEND)
Higher Carer’s Allowance earnings threshold, allowing carers to earn over £10,000 annually while retaining eligibility

State Pension Increase

The government has confirmed it will maintain the triple lock.

From 2025–26:

Basic and new State Pensions will increase by 4.1%

Around 12 million pensioners are expected to benefit from the increase.

What the UK Autumn Budget 2024 Means for Businesses and Individuals

The Autumn Budget 2024 introduces wide-ranging fiscal reforms that will shape financial planning over the coming years. Employers face higher National Insurance costs and increased wage bills, while individuals will need to prepare for changes to Capital Gains Tax, Stamp Duty and inheritance planning.

At the same time, continued investment in healthcare, housing and education reflects the government’s focus on long-term economic growth and public service improvement.

Whether you’re a business owner, employer, landlord or individual taxpayer, reviewing your tax position and financial plans ahead of these changes can help you remain compliant and make informed financial decisions.

UK Autumn Budget 2024: Key Tax Changes Explained for Individuals and Businesses