Key features of the UK Budget 2024: What you need to know

Chancellor Rachel Reeves’ 2024 UK Budget, marking Labour’s first in over a decade, introduces a series of significant tax changes and policies that will impact many of our clients.

From tax hikes to structural reforms, these measures aim to balance public spending needs with fiscal responsibility. Our partners, MEUM Group offer insights on how these changes may affect high-net-worth individuals, families, and businesses, including updates on inheritance tax, capital gains, private equity, pensions and more.

The budget introduces approximately £40 billion in tax rises to meet funding needs.

Key changes ahead

Tax increases and adjustments

  • Corporation Tax: No changes; top rate stays at 25%, small profits rate at 19%.
  • Private Equity: Carried interest tax rises to 32% from April 2025, with new regime from 2026 treating carried interest as income.
  • Capital Gains Tax: Increased to 18% (basic) and 24% (higher) from immediate effect.
  • Inheritance Tax (IHT): Nil-rate bands remain unchanged, but Agricultural Property Relief (APR) and Business Property Relief (BPR) face restrictions from 2026.
  • Pensions & IHT: Unused pension funds will be subject to IHT from April 2027.
  • VAT on Private School Fees: Exemption removed from January 2025.
  • Stamp Duty Land Tax (SDLT): Additional surcharge for companies buying residential property from November 2024.
  • Air Passenger Duty (APD): Increased for premium and private jet passengers from April 2025.

Non-Dom & International Changes

  • Non-Dom Status: Abolished from April 2025, replaced with residence-based system.
  • Foreign Income and Gains (FIG): New regime shields qualifying individuals for the first four years of UK residence.
  • Excluded Property Trusts: Will now be subject to IHT.

Employment costs

  • National Insurance Contributions (NICs): Employer NICs rise to 15% from April 2025, with threshold reduced to £5,000.
  • Minimum Wage: Increases from April 2025, raising employment costs by nearly 11% for minimum wage workers.
  • Employment Allowance: Increased to £10,500 from April 2025.

To uncover the key changes and understand how they might affect you, dive into the full article from our partners, MEUM Group.

Key features of the UK Budget 2024: What you need to know