Chancellor Rachel Reeves has delivered Labour’s first Budget since 2010. Below we summarise some of the key points.
Employer National Insurance – Increased to 15% from April 2025 and the threshold for employer NI contributions will be reduced from £9,100 to £5,000. The employment allowance is being increased from £5,000 to £10,500.
National Living Wage – will increase to £12.21 from April 2025. The 18-20 year old rate to increase to £10.
Capital Gains Tax – increasing to 18% at the lower rate and 24% at the higher rate. CGT rates on additional property sales remain unchanged.
Business Asset Disposal relief – will remain at 10% this year, and rise to 14% in April 2025 and 18% in April 2026
Inheritance tax – thresholds to remain frozeon until 2030.
VAT – added to private school fees starting in January 2025.
Stamp Duty – on second homes will rise to 5%.
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