The UK Chancellor of the Exchequer Rachel Reeves recently delivered the 2024 Autumn Budget. A panel of tax experts from our UK member firm Alvarez & Marsal have reviewed the key measures in the announcement and provided their views on what the changes could mean for individuals and businesses.
Some key tax-specific points include:
National Insurance: Changes in employer National Insurance, combined with a higher National Living Wage, will increase costs for businesses.
Corporation Tax and Capital Allowances: The Corporation Tax roadmap maintains the current Capital Allowances regime and introduces a consultation on pre-development costs.
Electric Vehicles: Incentives for EVs are welcome, though a VAT cut on charging was omitted. Fuel duty remains steady, balancing economic relief with sustainability goals.
R&D Tax Relief: The budget introduces no further R&D tax changes but emphasises compliance. A consultation on advance clearances is planned to improve claim management.
Capital Gains and Carried Interest: Capital Gains Tax rises modestly, providing some relief. Carried interest rates increase, though full alignment with income tax was avoided.
Business Rates and National Living Wage: Retailers face mixed impacts—business rates relief helps but wage increases and NIC rises challenge operational budgets, potentially leading to cost-cutting measures.
You can read the full commentary from our experts here.
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