Autumn Budget 2024: Outcomes & Analysis
Yesterday’s Budget was a watershed moment, with seismic changes announced for this year and those to come. Our Tax Team share their views on the proposals, and warn that whilst businesses will carry the lion’s share of tax increases, the impact of future reforms to the Non-Dom rules and Inheritance Tax should not be underestimated.
In a packed and typically raucous House of Commons, Rachel Reeves stood up to deliver the long overdue first Budget Statement by a female Chancellor of the Exchequer in its 800-year history. This was one of the most anticipated Budget Statements in recent memory and she did not disappoint us. The new government announced that it had inherited a “black hole” in the country’s finances early on, and this Statement sought to fill that hole with some substantial tax rises both now and in the future, as well as a raft of consultations and other initiatives.
On a positive note, and whilst changes have been made, it was pleasing to see that the Chancellor has listened to industry commentators who advised that a large increase in Capital Gains Tax rates would not increase tax revenues. Whilst a similar case was made in relation to the proposed rules regarding the abolition of the Non-Dom regime, changes here might have proved more contentious with the general electorate and therefore, it seems that any significant U-turn was not to be tolerated by this Chancellor.
As we analyse the many pages of budget literature, we are left to ponder how this may alter taxpayers’ financial decisions moving forward, be it investment or retirement planning, for instance. Time will tell, but it’s certainly a watershed moment.
Read full details of the effects of the changes on individuals and businesses here: Autumn Budget Report 2024
As advisors, we are ready to help our clients navigate their way through this raft of changes in the most proactive and efficient way possible.
Steve Wren | Tax Partner