UK Chancellor Rachel Reeves MP, the first woman to hold that position, delivered the new Labour government’s first budget on 30 October 2024. As part of the budget announcement, Chancellor Reeves confirmed that this budget represents a tax increase of GBP 40 billion to “restore financial stability” and to rebuild Britain.
The budget introduced a new residence-based foreign income and gains (FIG) regime. (For prior coverage, see United Kingdom - 2024 Autumn Budget Brings Changes to Non-Domiciled Taxation - BDO).
Other measures relevant to employers and their employees include:
For more information on this topic, please consult your regular BDO contact or the author of this article.
Stuart Strong
BDO in United Kingdom
The budget introduced a new residence-based foreign income and gains (FIG) regime. (For prior coverage, see United Kingdom - 2024 Autumn Budget Brings Changes to Non-Domiciled Taxation - BDO).
Other measures relevant to employers and their employees include:
- A 1.2% increase in employers Classes 1, 1A, and 1B National Insurance from April 2025, raising the rates to 15%.
- The Class 1 NIC secondary threshold will be reduce from GBP 9,100 to GBP 5,000 annually.
- An increase in the capitals gains tax (CGT) rates to 18% for standard rate taxpayers and 24% for higher rate taxpayers, which took effect on 30 October 2024.
- Mandatory payrolling of benefits in kind to be introduced from April 2026.
- National Minimum Wage rates to increase from April 2025.
For more information on this topic, please consult your regular BDO contact or the author of this article.
Stuart Strong
BDO in United Kingdom