Autumn Budget 2024: Maximising the Opportunities

The Autumn Budget 2024 has introduced a range of fiscal updates which will significantly impact organisations and individuals.

Whilst they present challenges, if carefully navigated they also present planning opportunities.

Here our are 7 key takeaways:

1. Inheritance Tax (IHT) Updates

• Nil Rate Band Freeze: The IHT nil rate band remains fixed at £325,000, with the residence nil rate band at £175,000 until April 2030. This freeze could lead to a larger range of  estates becoming liable for IHT, so proactive estate planning with Oxus is essential.

• Reform of Agricultural and Business Property Relief (APR and BPR): Starting April 2026, solely the first £1 million of agricultural and business property will qualify for 100% relief. Anything above this threshold, will attract only 50% relief. For family-owned businesses and estates, careful asset structuring with Oxus may be required to maximise relief eligibility.

2. Changes in Pension Taxation

• Inclusion of Unused Pensions in IHT: From April 2027, most unused pension funds will be included in a person’s estate for IHT purposes. This will particularly affect those with substantial pension assets, thus carefully legacy planning with Oxus can help pass a larger proportion of assets to beneficiaries.

3. Capital Gains Tax (CGT) Adjustments

• Increased Rates: Effective October 2024, the main CGT rates rise to 18% (lower rate) and 24% (higher rate). Business Asset Disposal Relief (BADR) will also increase to 14% in April 2025, then to 18% in April 2026. Oxus can help with timing disposals to minimise CGT exposure​.

4. New Corporation Tax Roadmap

• No Rate Changes, but Key Consultations: The government will maintain current corporation tax rates but plans consultations on key areas, including potential reforms to R&D tax relief, allowances for renewable energy projects, and transfer pricing. Rest-assured Oxus will keep you informed to proactively deal with these future changes.

5. Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA)

• MTD ITSA Rollout: Self-assessment income tax returns will be filed through the Making Tax Digital System starting in 2026 for those with turnover over £50,000, with thresholds decreasing to £30,000 in 2027, and to £20,000 by the end of the parliamentary term. For businesses and self-employed individuals, Oxus can help you avoid fines and transition to compliant digital accounting solutions​.

6. Employer National Insurance Contributions (NICs) Changes

• Rate Increase and Lower Threshold: Employers' NICs will increase to 15% in April 2025, with the threshold reduced to £5,000. The Employment Allowance will increase to £10,500 to mitigate this impact for smaller employers. Businesses with higher wage bills should prepare for increased NIC costs in the coming years​. Oxus can help you forecast the effect of the new changes and administer your entire payroll process for complete peace of mind.

  
  

7. Stamp Duty Land Tax (SDLT) and Residential Property CGT

• Increased Rates on Additional Properties: SDLT on second or additional homes rises from 3% to 5% for individuals and from 15% to 17% for companies purchasing properties over £500,000. Additionally, the temporary residential SDLT rates will revert to prior levels by April 2025. Oxus can help manage  property portfolios to minimise this tax burden and help ensure new acquisitions​ are correctly budgeted for.

In light of these changes, Oxus Financial is here to support you and your organisation address the impacts of these policy shifts. We encourage proactive reviews of your affairs to adjust financial  plans and optimise tax strategies to make the most of available reliefs and navigate these developments effectively.

For more information on the budget or to book a meeting, do not hesitate to contact us below: