The Chancellor of the Exchequer, Rachel Reeves, has announced in the House of Commons that the Autumn Budget will be on 30 October 2024. The Budget will be accompanied by a comprehensive fiscal statement from the Office of Budget Responsibility (OBR).
This announcement came as part of the Chancellor’s statement on ‘public spending inheritance’, with the Chancellor revealing that the Treasury’s finances are in a worse state than anticipated, sparking speculation about potential tax increases in the upcoming Autumn Budget.
The new Government, elected on a platform of enhancing economic stability and growth, has evaluated public spending and identified a spending gap in the nation’s finances.
Despite Labour’s manifesto commitments to not raise income tax, national insurance contributions, corporation tax, or VAT rates, there remains the possibility of targeting other taxes to generate revenue. Potential targets include capital gains tax (CGT), inheritance tax, and stamp duty land tax.
An increase in CGT rates appears to be the most likely measure, with some predictions suggesting Labour might align CGT rates with income tax rates. However, it is expected that a taper mechanism would be introduced to exclude inflationary gains from being taxed as income.
Another potential change could involve abolishing business asset disposal relief (previously known as entrepreneurs’ relief), which currently reduces CGT on the sale of qualifying business assets to 10% for disposals up to a lifetime limit of £1 million.
Additionally, the government might consider preventing the rebasing of assets for CGT purposes upon death, unless those assets are subject to inheritance tax.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services Limited - a Marketing & Content Agency for the Professional Services Sector.
