Here’s our small business summary of the Autumn Statement, with all the major tax, National Insurance and minimum wage changes explained for you.
Here’s your breakdown of the major business announcements from the Autumn Statement 2024.
A budget to fix the foundations of the economy
On 30 October 2024, Chancellor Rachel Reeves presented the Autumn Statement, aiming to stabilize the economy, support workers, improve the NHS, and rebuild Britain.
The budget favours workers but will hit small UK businesses hardest. Key changes include a higher minimum wage, increased employer National Insurance contributions, and revised Capital Gains Tax.
The budget emphasises short-term sacrifices for long-term stability to revitalise the economy.
Taxes will rise by £36 billion per year: £24 billion from employer NI increases, £6 billion from capital gains and inheritance tax changes, £4 billion from fraud prevention, and £2 billion from other measures like a VAT increase on private school fees.
Let’s look at the big announcements and how they’re likely to affect small business
Key changes to tax and National Insurance:
Employers’ NI contributions to increase
Employers’ National Insurance (NI) is currently charged at 13.8% on income over £9,100 per employee. This will increase in April 2025 to 15% on income over £5,000 per employee. The additional costs will be reduced/eliminated for smaller employers by increasing the Employment Allowance from £5,000 to £10,500.
Capital Gains Tax (CGT) rates change
CGT is generally charged at 10% for gains falling within the basic rate tax band, and 20% for gains above that tax bracket. From 30/10/2024, those rates will increase to 18% and 24%, aligning them with the current rates charged on residential property disposals.
BADR rate to increase
Business Asset Disposal Relief (BADR) levies a charge of 10% on the first £1 million of capital gains arising on disposal of qualifying businesses. That rate will increase to 14% from April 2025, and 18% from April 2026.
Amendments to Inheritance Tax (IHT)
The current inheritance tax (IHT) threshold of £325,000 (or £500,000 for residences passed to direct descendants) is extended until April 2030. Starting April 2027, pension pots and death benefits from pensions will be subject to IHT. From April 2026, the first £1 million of agricultural property and business assets will be IHT-exempt, with 50% of any excess over £1 million also exempt, while the remainder will be taxed as part of the estate. AIM shares held for over two years will see their exemption reduced to 50%, resulting in an effective IHT rate of 20% on those shares.
Other tax and duty changes include:
Stamp duty
The additional stamp duty on second homes will rise from 3% to 5% on 31 October 2024. Stamp duty on properties bought by companies will increase by 2%.
Business rates
A 40% business rates relief for retail, hospitality, and leisure sectors will start in April 2025, capped at £110,000.
Electric vehicles
The 100% first-year allowance on new electric vehicles is extended by one year to 31 March 2026 for corporation tax and 5 April 2026 for income tax.
Fuel duty
Although widely expected to increase, fuel duty has remained frozen for a further year up to 22/03/2026.
Notable non-tax measures:
Minimum wage – minimum wages are increasing from April 2025:
| From | From | Increase | % | |
| 01/04/2024 | 01/04/2025 | |||
| 21 and over | £11.44 | £12.21 | £0.77 | 6.73% |
| 18-20 | £8.60 | £10.00 | £1.40 | 16.28% |
| Under 18 and apprentice | £6.40 | £7.55 | £1.15 | 17.97% |
Interest on late tax payments
Interest charged on late tax payments is going up by 1.5 percentage points to Bank Base Rate plus 4%.
Boost to HMRC compliance staffing
HMRC is adding 5,000 fraud detection staff by 2029/30. As well as 1,800 debt-management staff to focus on overdue taxes and non-compliance.
Non-dom tax regime to be replaced
The non-dom tax regime will be scrapped altogether, and replaced with a residence-based scheme covering new arrivals for the first four years of their UK tax residence. Details are yet to be announced.
Talk to us about how the Autumn Statement will affect your business.
Rachel Reeves said this is not a budget that the Government wants to repeat. Some tough measures have been needed to fill the £22 billion hole in the public purse, and to set the UK plc on a course that will drive the economy forward.
If you’re concerned about any of the measures announced in the Autumn Statement, our team will be happy to run you through the major changes and their potential impacts.
