Autumn Budget 2024: Top Personal Tax Changes You Can’t Afford to Ignore
Autumn Budget 2024: Chancellor Rishi Sunak recently unveiled the UK government’s autumn budget proposals, which include several significant changes to personal tax laws. These updates are crucial for individuals to understand as they could impact their financial situation and tax obligations moving forward.
National Living Wage
The national living wage is set to increase by 6.6%, bringing the hourly rate up to £10.42 from April 2025.
Income Tax Bands
The personal allowance, which is the amount of income an individual can earn tax-free, will rise to £13,850 from April 202The higher rate threshold, which marks the income level at which individuals start paying the higher rate of tax (currently 40%), will increase to £51,275.
Capital Gains Tax
There will be a capital gains tax (CGT) increase for higher-rate and additional-rate taxpayers. From April 2024, they will pay CGT at a rate of 24%, up from the current 18% and 20%. Basic-rate taxpayers will continue to pay the lower CGT rate of 10%.
Inheritance Tax
The nil-rate band, which is the amount of an estate that can be passed tax-free, will remain frozen at £325,000 until 2026. However, the residence nil-rate band, which allows a couple to leave their main home worth up to £1 million tax-free, will increase by £25,000 from April 2024.
5. Stamp Duty Land Tax
The government has announced that it will restore the stamp duty land tax threshold to its original level of £125,000 for first-time buyers in England and Northern Ireland from April 202For other property purchases, the zero-rate threshold will be £250,000.
Conclusion:
These changes to personal tax laws highlight the importance of individuals remaining informed about their tax obligations. It’s essential to review your financial situation regularly and consider seeking advice from a tax professional or financial advisor to ensure you are making the most of any available tax reliefs and allowances.
Disclaimer:
This article is for information purposes only and should not be considered as tax advice. Please consult a professional tax advisor or accountant for specific guidance on your personal circumstances.
Autumn Budget 2024: Key Personal Tax Changes for Taxpayers
Autumn Budget 2024, the annual financial statement presented by the UK’s Chancellor of the Exchequer, is a crucial event for personal taxpayers. This significant economic update brings prospective changes to the UK’s fiscal and tax policies, with implications that may impact your pocket.
Why Stay Informed?
Being knowledgeable about personal tax changes is essential. Keeping up-to-date enables individuals to make informed decisions regarding their financial planning, such as adjusting retirement savings or investment strategies. Moreover, it can help taxpayers identify potential opportunities and mitigate risks arising from these modifications.
Overview of Autumn Budget 2024
Each year’s Autumn Budget unveils a myriad of measures affecting personal taxation. This article provides an
Income Tax Rates and Thresholds
An update on the Income Tax rates and thresholds is always a focal point, as changes in these figures can significantly impact how much tax you pay.
National Insurance Contributions
Anticipated adjustments to National Insurance Contributions (NICs) may affect your overall tax liability, particularly regarding employee and employer contributions.
Capital Gains Tax
Capital Gains Tax (CGT) changes, including rates and exemptions, can influence the tax liability on your investment income.
Pension Contributions and Tax Reliefs
Updates on pension contributions, tax reliefs, and other related policies can significantly impact your retirement planning.