Autumn Statement highlights: key tax and financial changes impacting you and your business

In the latest Autumn Statement, the UK government unveiled a range of fiscal updates that will impact businesses, investors, and individuals alike. Boxed in by Labour’s manifesto pledges not to increase income tax, employee’s national insurance and VAT, Chancellor Rachel Reeves instead had to raid other taxes, like capital gains tax (CGT), inheritance tax (IHT), employer’s national insurance and to extend the tax threshold freeze to find the £40bn needed to balance the books.

While the tax rises came thick and fast, the Chancellor announced there would no longer be biannual fiscal events. The Budget will now only be in the autumn, while the Spring Statement will have no tax changes.

Reeves said the tax-and-spend Budget was necessary to reverse the dire state of the public finances the Government inherited and to “fix the foundations to deliver change.”

“This Government was given a mandate to restore stability to our economy and to begin a decade of national renewal, to fix the foundations and deliver change through responsible leadership in the national interest. That is our task. And I know that we can achieve it,” said Reeves at the start of her Budget statement.

Explore the highlights

To help you navigate the key takeaways, we’ve created a comprehensive guide that covers all the updates in detail, offering you free tax advice from Verallo’s Tax Partner, Ollie Turner, to help you navigate these changes.

We’re also sharing the essential highlights most likely to impact you and your business. Here’s what you need to know:

National Insurance (“NIC”)

• Employee NIC remains unchanged.
• The main rate of Employer NIC is to increase by 1.2% to 15% from April 2025.
• The threshold beyond which Employer NIC is payable is to be reduced to £5,000 from April.
• The employment allowance is to increase to £10,500 from April 2025, with a simultaneous removal of the £100k eligibility threshold.

 Capital Gains Tax (“CGT”)

• Effective from 30.10.24, the main rates of CGT increase from 10% and 20% to 18% and 24% respectively. This brings them in line with the rates of CGT on property which remain unchanged.
• The Business Asset Disposal Relief (“BADR”) lifetime limit is to remain at £1 million but the CGT rate is to increase to 14% in 2025-26 and 18% in 2026-27. It remains at 10% in the current tax year.
• The tax-free disposal to EOTs remains but the conditions are now stricter in terms of valuation and control. In addition, the period of time during which the tax can be clawed back if there is a subsequent sale is extended from 1-2 years to 4-5 years.
• CGT on carried interest is to increase to 32%.

Inheritance Tax (“IHT”)

• The thresholds are frozen until at least 2030.
• Unspent pensions and retirement benefits are to be brought within the scope of IHT on death from April 2027.
• BPR and APR are to be reformed from April 2026 with 100% relief from IHT applying for the first £1m of assets with 50% relief applied thereafter resulting in an effective tax rate of 20% for BPR or APR assets to the extent that they exceed £1m in combined value.
• AIM listed shares will qualify for 50% relief from IHT.

Income Tax

• It is now confirmed that payrolling benefits in kind will be mandatory from April 2026.
• The non-dom regime is to be abolished from April 2025 as expected. There will be a 3-year temporary repatriation facility placing a fixed tax charge of 12% (15% in the final of the 3 years) on the remittance of funds not previously taxed due to a remittance basis claim.
• Percentage rates used to calculate benefits in kind on company cars are to increase. For electric cars they will increase by 2% per year in 2028-29 and 2029-30. For hybrids, they will increase to 18% in 2028-29 and 19% in 2029-30. For all other cars, they will increase by 1% per year in the same two years.
• From April 2025, Double Cab Pickups with a payload of 1 tonne or more are to be treated as cars for the purpose of capital allowances and benefits in kind. Where the vehicle was or is purchased pre-April 2025, the current rules in terms of deductions and BIKs will apply until the earlier of the disposal date or April 2029.
• The previously discussed plan to assess the high income child benefit charge based on household rather than individual income has been scrapped.
• As previously proposed, the furnished holiday let tax regime is to be abolished from April 2025.
• From April 2028, the income tax thresholds are to start rising again in line with inflation.

Corporation Tax (“CT”)

• There is a commitment to ensure the main rate of CT to be maintained at a maximum of 25% through this governments term and this forms part of their published “Corporation Tax Roadmap.”
• The availability of 100% first year allowances in respect of electric vehicles is to be extended to March 2026.
• A consultation into transfer pricing is to be launched with a possible reduction in thresholds to be applied.
• R&D relief rates are to remain as currently proposed.

Indirect Tax

• The Stamp Duty Land Tax residential property surcharge rate is to increase from 3% to 5% for purchases of additional properties by individuals or purchases by limited companies, with immediate effect.
• It is confirmed that the standard rate VAT at 20% will apply to private school fees from January as anticipated.

HMRC

• HMRC are increasing the rate of interest due in respect of late paid taxes by 1.5% from April 2025 across the board.

We’re here to support

If you’d like to discuss how these changes might affect your business or personal finances, our team is here to help. Reach out to us for a personalised consultation by emailing info@verallo.com or calling 0203 912 9933.