There was a huge amount of information within the budget documents so here are the main points for individuals.

What hasn't changed

Income tax rates and thresholds remain the same and continue to do so until 2028/29. The government have said that they will then rise in line with inflation reducing the “fiscal drag”

Employees and self employed National Insurance contributions rates have not changed.

The abolition of the Furnished holiday letting regime is still going ahead from April 2025.

There have been no changes to tax relief on pension contributions or the ability to draw a tax free lump sum from your pension pot.

ISA investment limits remain fixed at their current levels until 2030.

High Income child benefit charge (HICBC) - The previous government proposed in the spring budget to move to a household income based charge rather than the current charge based on the highest earners income. It was confirmed in the budget that this proposal will not be considered further and the current system will remain unchanged. The increased income threshold of £60,000 for 2024/25 onwards hasn't been changed.

Now, for the changes….

Capital Gains Tax

It was expected that Capital Gains Tax rates would increase and this was confirmed in the Autumn Budget. Here are the new rates:

The lower rate of 10% for basic rate tax payers has increased to 18% and the higher rate of 20% for higher rate taxpayers has increased to 24% with effect from budget day - 30 October. This change aligns the rates with the higher rates for disposals of residential properties so we are back to having just the two rates again.

Business asset disposal relief - this relief applies where an individual disposes of their business, or shares in their qualifying company, and previously the rate was 10% on the first £1m of gain and 20% thereafter. The lifetime limit of £1m remains but the rates of tax are going up as follows

Disposals between budget day and 5 April 2025 - no change - 10% on first £1m of gain then 20%
Disposals between 6 April 2025 and 5 April 2026 - 14% on first £1m of gain and then 24%
Disposals after 6 April 2026 - 18% on first £1m of gain and then 24%

Inheritance tax

The major change here is for businesses owners and farmers. Previously the value of qualifying business property (shares, land and business assets) was relieved from Inheritance tax. From April 2026

Business property relief and agricultural property relief will be 100% of the first £1m of asset value
Relief is restricted to 50% on the asset value over £1m giving an effective IHT rate of 20%
Business property relief is also restricted to 50% on unquoted AIM listed shares (previously 100%)

Another change to be aware of, Inherited pensions funds are generally outside of a person's estate for Inheritance tax purposes however from April 2027 these funds will become part of a person's taxable estate and subject to Inheritance Tax at 40% (on current rates)

Stamp Duty Land Tax (SDLT)

The additional rate for the purchase of any additional residential properties increased from 3% to 5% from 31 October 2024

Non UK domiciled individuals

The current regime is being scrapped in favour of a residence based scheme. This is a really complex area which requires specialist advice so we won't go into the details but it will apply to individuals arriving in the UK and becoming resident in the UK with overseas income and gains.

Making Tax Digital for Income Tax (MTD for ITSA)

It is now confirmed that MTD for ITSA will go ahead from April 2026 after a number of delays.

MTD will affect individual sole traders and landlords with those having a combined turnover of £50,000 or more in the 2024/25 tax year joining the scheme from April 2026. In April 2027 those with combined turnover of £30,000 or more will join the scheme. The government confirmed those with combined turnover of £20,000 or more will eventually join but the date is unconfirmed. Check out our MTD blog for more detailed information.

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