The Autumn Budget 2024 saw significant tax changes, and, particularly, to Inheritance Tax (IHT), Capital Gains Tax (CGT), and Stamp Duty Land Tax (SDLT).

We briefly summarise what you need to know below, or you can check out our long read for a more in-depth look at the tax implications here.

Tax summary

  • Historic Tax Changes: Rachel Reeves, as the first female Chancellor, announced major tax changes aimed at increasing tax revenue, addressing a fiscal deficit, and building a fairer Britain.
  • Rising Tax Burden: The tax burden has increased from 33% to 37% of GDP and is expected to reach 38% by 2027-28, driven by pressures on public services and an aging population.
  • Changes to Inheritance Tax: The IHT threshold of £325,000 will be frozen until April 2030, with significant changes to Agricultural Property Relief (APR) and Business Property Relief (BPR), now limited to 100% relief up to £1 million and 50% beyond that.
  • Impact on Business Owners: AIM shares and quoted but unlisted shares will now qualify for only 50% relief, impacting family businesses and necessitating succession planning to mitigate IHT liability.
  • Capital Gains Tax Adjustments: CGT rates have been increased to flat rates of 18% and 24% (for lower and higher rate tax-payers, respectively), with changes to Business Asset Disposal Relief and Investors’ Relief, highlighting the need for immediate planning  around passing on businesses and business exits.
  • Stamp Duty Land Tax Increases: SDLT surcharges for additional residential properties and company purchases have been increased, with new rates taking effect from 31 October 2024, and thresholds for residential property reducing from 31 March 2025.

If you need advice on any tax issues, please contact Camilla James in our Succession & Tax team, John Shallcross for property tax and Rob Thomas for corporate tax matters.

This article was co-written by Camilla James, Jessica Apps and John Shallcross.

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