Key Changes In Table Format
| Change | Description | Effective Date | Financial Impact |
|---|---|---|---|
| Employer NIC Increase | Employers’ NIC rate rises by 1.2% to 15%; threshold drops from £9,100 to £5,000. | April 2025 | Expected to raise £25 billion per year. |
| Employment Allowance Increase | Allowance doubles from £5,000 to £10,500, exempting ~65,000 employers from NIC. | April 2025 | Provides NIC relief to small businesses. |
| Capital Gains Tax | CGT lower rate rises from 10% to 18%; higher rate from 20% to 24%; CGT on residential property also set to 24%. | 6 April 2025 | Increases tax revenue on high-value transactions. |
| Inheritance Tax Threshold Freeze | IHT threshold remains at £325,000, freeze extended until 2030. | Now until 2030 | Aims to maintain current IHT revenue. |
| Pension and Relief Adjustments for IHT | IHT applies to unspent pensions; agricultural and business property reliefs scaled back for high-value estates. | April 2025 | Targets higher-value estates, increasing fairness in IHT. |
| Minimum Wage Increase | National Living Wage increases by 6.7% to £12.21 per hour for 21+, 16.3% increase to £10 for ages 18-20. | April 2025 | Adds £1,400 annually for full-time workers over 21. |
| Fuel Duty Freeze | Existing 5p cut maintained; further increases frozen. | Now until April 2026 | Provides £3 billion in relief on fuel costs for drivers. |
| Alcohol and Tobacco Duty | 1.7% cut on draught alcohol; tobacco duties rise by inflation + 2%, with a 10% surcharge on rolling tobacco. | February 2025 | Lowers alcohol cost slightly; increases tax on tobacco products. |
| VAT on Private School Fees | Private school fees will be subject to VAT. | January 2025 | Expected to raise £1.6 billion for recruiting 6,500 new state school teachers. |
| School Funding Increase | Department for Education gets £6.7 billion boost, including £1.4 billion for rebuilding schools and £2.3 billion for teacher hiring. | April 2025 | Aims to improve educational infrastructure and staffing. |
| Affordable Housing Fund | £5 billion allocated to increase affordable housing and remove dangerous cladding. | April 2025 | Supports housing safety and affordability improvements. |
| Stamp Duty Land Tax (SDLT) | SDLT on second homes and buy-to-let properties will increase by 2%, from 3% to 5%. | 31 October 2024 | Increases tax revenue from secondary residential property purchases. |
| Warm Homes Plan | £3.4 billion investment in energy-efficient upgrades to reduce household energy bills. | Starting 2025 | Lowers energy costs for households. |
| Green Energy Support via Great British Energy | Creation of a new state entity, Great British Energy, to promote renewable energy. | 2025 | Positions UK as a leader in renewable energy. |
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