The countdown to labour’s first Autumn Budget in a decade

One of the most pressing topics in UK business and accounting is the anticipated tax rises in the upcoming Autumn Budget 2024. 

Amid a looming £22 billion deficit, the government is expected to announce new tax measures to address this fiscal gap. While major taxes like income tax, National Insurance, and corporation tax are unlikely to see increases, secondary taxes, including Capital Gains Tax (CGT) and Inheritance Tax (IHT), are under scrutiny.

What can you expect from the budget?

One of the key proposals is to align CGT rates with income tax rates, which could significantly impact individuals selling assets. 

Additionally, there are discussions about reducing pension tax relief and possibly altering the tax-free lump sum, moves that could affect a broad spectrum of taxpayers.

Businesses should also prepare for potential changes to business rates and the abolition of certain reliefs like the Business Asset Disposal Relief, which could lead to strategic changes in business operations and liquidations ahead of the new regulations.

With these changes on the horizon, businesses and individuals alike should consider reviewing their financial and tax planning strategies to mitigate the impact of these expected tax hikes​.

When is the Autumn Budget?

The Chancellor, Rachel Reeves, announced that the Autumn Budget will be held on 30 October 2024. With the Prime Minister, Sir Keir Starmer, warning that the budget will be “painful”, and that people would have to “accept short-term pain for long-term good”, many wait in anticipation for what could be some unpleasant listening.