By Anna Jordan on Small Business UK - Advice and Ideas for UK Small Businesses and SMEs
The Budget is back again – Labour’s first since winning the General Election in July 2024.
There’s been a lot of talk of a £22bn ‘black hole’ in the UK’s finances, the highest since the end of World War II.
With limited media leaks, we don’t know an awful lot about what’s to come. However, PM Keir Starmer has said, “Those with the broadest shoulders should bear the heaviest burden,” so that’s some indication.
Here’s what we can tell you so far.
When is the Autumn Budget 2024?
This year, the Autumn Budget falls on 30 October 2024.
What time will it happen?
It’s normally on shortly after 12:30pm, when Prime Minister’s Questions (PMQs) is over, and it will last around an hour.
How can I watch the Autumn Budget 2024?
The Budget will be broadcast live on the BBC and streamed on ParliamentTV.
What could happen in the Autumn Budget 2024
Here are some of the announcements we could be seeing at the Autumn Budget.
Labour has voiced their pledge to freeze corporation tax at 25 per cent and keep full expensing as it is for the rest of parliament. They’ve also backed up their election pledge not to increase VAT, Income Tax and National Insurance.
This black hole needs to be filled in somehow, and these areas may be where we see changes.
Capital Gains Tax increase
Capital Gains Tax (CGT) rates are at historic lows, making it a more obvious target. It could be the case that Reeves increases the rate so CGT is taxed at the same level as income tax. There are other ways they can increase the burden of Capital Gains Tax, such as reducing the annual CGT exemption, which is currently at £3,000.
Business Asset Disposal Relief
One arm of Capital Gains Tax is Business Asset Disposal Relief. As it stands, if you sell a business asset up to the value of £1m, then you’ll be taxed at a lower rate of 10 per cent. This limit could be reduced.
Inheritance Tax (IHT) reliefs reduced or removed
IHT can be reformed in many ways. One such way is capping IHT relief for business and agricultural assets at £500,000 per person, according to RJP. Alternatively, the government might cap or reduce 100 per cent business relief, or they might tighten the criteria for business relief and agricultural relief.
Incentivising green investments
In line with the government’s climate targets, we could be seeing more business incentives for the likes of introducing renewable energy and boosting carbon reduction.
Business tax roadmap
Labour promised a ‘business tax roadmap’ within six months of being elected. It seems as if Budget day is going to be that day. It will map out what business tax is going to look like over the lifetime of this government.
Read more
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Anna Jordan, Khareem Sudlow
