Simpson Wood Autumn Budget 2024

11 Autumn Budget | 30 October 2024 Benefit upratings The state pension ‘triple lock’ will be retained for the duration of this Parliament. The basic and new state pensions will increase by 4.1% from April 2025, in line with earnings growth (including bonuses) to July. The pension credit standard minimum guarantee will also increase by 4.1% from April 2025. From the same date, working age benefits will be increased by 1.7%. Business taxes Corporation tax rates The main rate of corporation tax will remain at 25% and the small profits rate will stay at 19% for the financial year starting 1 April 2025. The government has committed to maintaining full expensing, the annual investment allowance, research and development (R&D) relief rates and the patent box. Furnished holiday lettings The specific tax treatment and reporting requirements for furnished holiday lettings (FHL) will end, as previously announced. From 6 April 2025, for income tax and CGT and from 1 April 2025 for corporation tax, FHL income and gains will be taxed in the same way as other property income and gains. Capital allowances The 100% first-year allowances for qualifying expenditure on zero-emission cars and for qualifying expenditure on plant or machinery for electric vehicle charge points will be extended to 31 March 2026 for corporation tax and 5 April 2026 for income tax. The government is exploring extending full expensing to assets bought for leasing or hiring “when fiscal conditions allow”. HMRC will continue to work with stakeholders to improve guidance in areas of uncertainty within the capital allowances system. Think ahead Your business might be entitled to a valuable R&D tax credit – even if it doesn’t make a taxable profit. Check out the latest position; you might be surprised what expenditure may now qualify and how much it could be worth to you.

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