Corporation Tax
- Maintain the headline rate at 25%
- Maintain the Small Profits Rate and marginal relief at their current rates and thresholds
- Maintain permanent full expensing
- Maintain the £1m Annual Investment Allowance, writing down allowances, and the Structures and Buildings Allowance
- Maintain the rates for the merged R&D Expenditure Credit scheme and the Enhanced Support for R&D Intensive SMEs
- Maintain the Patent Box
Making Tax Digital (MTD)
- Extend MTD for Income Tax to sole traders and landlords with income over £20,000 by the end of this Parliament
Rates relief
- Freeze the small business multiplier and Small Business Rates Relief through 2025-26
- Introduce permanently lower business rates multipliers for high street retail, hospitality, and leisure properties (RHL) from 2026-27
Inheritance Tax (IHT)
- Freeze IHT thresholds until 2030
- Propose significant restrictions on agricultural and business property relief from April 2026
- Include unused pension funds and death benefits in estates from April 2027
Capital Gains Tax (CGT)
- Increase the main rates of CGT and carried interest from 10% to 18% and from 20% to 24% effective 2024-10-30
- Raise the rate for trustees and personal representatives from 20% to 24%, while leaving the existing rates for residential property (18% and 24%) unchanged
- Increase the rate for Business Asset Disposal Relief and Investors’ Relief from 10% to 14% from 2025-04-06, and further to 18% from 2026-04-06
- Reduce the Investors’ Relief lifetime limit from £10m to £1m for qualifying disposals made on or after 2024-10-30
- Private equity managers will pay 32% tax on their carried interest gains from April 2025
National Insurance and Employment allowance
- Increase the rate of employer National Insurance Contributions (NICs) for Classes 1, 1A, and 1B by 1.2 percentage points to 15% from 2025-04-06
- Decrease the threshold at which employers start to pay NICs from £9,100 to £5,000 per year
- Increase the Employment Allowance from £5,000 to £10,500 and remove the previous £100,000 threshold, making it available to all eligible employers
Capital Allowances
- Maintain key features of the capital allowances regime, including full expensing with a 100% first-year allowance for qualifying new main rate plant and machinery, and a 50% first-year allowance for special rate machinery
- Continue the Annual Investment Allowance to offer 100% first-year relief for plant and machinery investments up to £1m for all businesses, including unincorporated ones
- Keep writing down allowances flexible, allowing businesses to choose which allowances to claim for main and special rate machinery
- Provide relief for capital expenditure on the purchase, construction, and renovation of new non-residential structures and buildings through the Structures and Buildings Allowance
‘Full expensing’ deduction for leased assets
- Include full expensing tax relief on leased assets to enable businesses to be more efficient by leasing assets and getting the newest, cleanest, and most efficient plant and machinery into the hands of business owners
VAT Thresholds
- Increase the taxable turnover threshold for VAT registration from £85,000 to £90,000 from 2024-04-01
- Raise the taxable turnover threshold for deregistration from £83,000 to £88,000
Furnished Holiday Lettings (FHL) regime
- Abolish the FHL tax regime from April 2025, eliminating the tax advantage for landlords who let out short-term furnished holiday properties over those who let out residential properties to longer-term tenants
Additional sources
- Autumn Budget 2024: tax rates and allowances
- HMRC Policy Paper – Autumn Budget 2024
- ACCA Autumn Budget Hub
Table summarising the provided Key Tax Rates information:
| Key Tax Rates | 2025/26 | 2024/25 |
| Income tax rates: England, Wales & Northern Ireland (non-dividend income) | ||
| 0% starting rate for savings only | Up to £5,000 | Up to £5,000 |
| 0% on personal allowance (subject to any clawback of PA) | £0 – £12,570 | £0 – £12,570 |
| 20% basic rate tax | £12,571 – £50,270 | £12,571 – £50,270 |
| 40% higher rate tax | £50,271 – £125,140 | £50,271 – £125,140 |
| 45% additional rate tax | Above £125,140 | Above £125,140 |
| Scottish rates of income tax (non-dividend income) | ||
| 0% on personal allowance (subject to any clawback of PA) | £0 – £12,570 | £0 – £12,570 |
| 19% starting rate | £12,571 – £14,876 | £12,571 – £14,876 |
| 20% basic rate tax | £14,877 – £26,561 | £14,877 – £26,561 |
| 21% intermediate rate tax | £26,562 – £43,662 | £26,562 – £43,662 |
| 42% higher rate tax | £43,663 – £75,000 | £43,663 – £75,000 |
| 45% advanced rate | £75,001 – £125,140 | £75,001 – £125,140 |
| 48% top rate (47% for 2023-24) | Above £125,140 | Above £125,140 |
| Income tax rates (dividend income) | ||
| Dividend ordinary rate (for dividends within basic rate band) | 8.75% | 8.75% |
| Dividend upper rate (for dividends within higher rate band) | 33.75% | 33.75% |
| Dividend additional rate (for dividends above higher rate band) | 39.35% | 39.35% |
| Personal Allowances | ||
| Personal allowance | £12,570 | £12,570 |
| Dividend allowance (no allowance for trustees) | £500 | £500 |
| Maximum married couple’s allowance for those born before 6 April 1935 (note 5) | £11,270 | £11,080 |
| Married couple’s allowance – minimum amount | £4,360 | £4,280 |
| Micro entrepreneur’s allowance (property or trading income) | £1,000 each | £1,000 each |
| Income limit for personal allowance (note 6) | £100,000 | £100,000 |
| Income limit for married couple’s allowance: born before 6 April 1935 | £37,700 | £ |
ACCA LEGAL NOTICE
This is a basic guide prepared by ACCA UK’s Technical Advisory Service for members and their clients. It should not be used as a definitive guide since individual circumstances may vary. Specific advice should be obtained, where necessary.