Key Amendments Announced in the Autumn Statement 2024

In this article, we pull out the key amends announced in the Autumn Statement that you’ll need to be aware of in terms of your CII exams. This article is particularly relevant to R01, R03, AF1, R02, AF4, CF6 and R07.

This article is relevant to examinable tax years 2024/25 and 2025/26 and is correct as at 12 November 2024.

There were few surprises in Rachel Reeves’ maiden Budget, primarily due to the measures having been ‘leaked’ to the media in the days preceding it. However, rather than focus on the politics, in this blog, we pull out the key amends that you’ll need to be aware of in terms of your CII exams.

Income Tax

There are no changes to Income Tax allowances for the 2025/26 tax year. The current freeze on the personal allowance and higher rate threshold will end on 5 April 2028. From 6 April 2028, these will start to rise in line with inflation.

Most company car tax rates will increase from 6 April 2026.

The planned changes to base the High Income Child Benefit Charge on total household income (rather than the income of the highest earner) have been scrapped.

National Insurance Contributions (NICs)

The main changes here are for employers and come into effect on 6 April 2025:

• The secondary threshold (the point at which employers start to pay NICs) falls to £5,000 (from £9,100).
• Employers will pay NICs at 15% (up from 13.8%).
• The employment allowance (which allows eligible employers to reduce their NI liability) increases to £10,500 (from £5,000) and the £100,000 threshold is removed.

Capital Gains Tax (CGT)

The rates of CGT have increased to 18% and 24% for gains falling below and above the basic rate threshold respectively. This measure came into effect immediately.

Further rate changes are planned for Business Asset Disposal Relief (BADR) and Investor’s Relief (IR):

• up from 10% to 14% from 6 April 2025; and
• a further increase to 18% from 6 April 2026.

With immediate effect, the lifetime limit for IR is reduced to £1 million (in line with BADR).

Inheritance Tax (IHT)

Nil Rate Bands

The nil rate and residence nil rate bands will now be frozen until 5 April 2030.

Business and Agricultural Reliefs

From 6 April 2025, land managed under certain environmental agreements will be eligible for IHT agricultural relief.

From 6 April 2026, 100% IHT business and 100% IHT agricultural relief will be restricted to the first £1m of combined business and agricultural property. Property in excess of this amount, will be eligible for 50% relief only.

Where a relevant trust structure was in place prior to 30 October 2024, the £1m allowance applies per trust. For trusts set up on or after this date, the £1m is shared between each trust.

Assets that would currently be eligible for 50% relief, remain eligible for 50% relief.

The 100% relief for unlisted shares – e.g. AIM shares – is reduced to 50%.

Pensions

From 6 April 2027, unused pension funds and pension death benefits will be included in the member’s estate for IHT purposes.

Non-Doms (Non-Domiciled)

From 6 April 2025, a residence-based regime will be introduced, replacing the current remittance regime:

• There will be a four-year relief for new arrivals into the UK, providing they have not been a UK resident for tax purposes in the last ten years. During this period, if they opt into the new regime, foreign income and gains (FIG) will be exempt from UK tax, even if they are brought into the UK.

• Anyone who has been a UK resident for tax purposes for more than four years will then start to pay UK tax on their worldwide income and gains. Their domicile status will not be relevant.

Transitional arrangements for those already eligible for or claiming the remittance basis will be put in place including:

• The option to rebase the value of personally held capital assets to 5 April 2017
• A Temporary Repatriation Facility (TRF): a three-year window to bring previously accrued overseas income and gains into the UK, subject to a tax charge of 12% (in 2025/26, 2026/27) and 15% (in 2027/28).

IHT is in scope. ‘Long-term UK residents’ – those who have been UK resident for at least 10 out of the last 20 tax years – will be liable to IHT on their worldwide assets. They will also remain in scope for between three and ten years after leaving the UK.

From 6 April 2025, non-UK assets will only be excluded property at times when the settlor is not a long-term UK resident.

Stamp Duty Land Tax (SDLT)

The SDLT surcharge for second properties rose from 3% to 5% on 31 October 2024.

The 0% SDLT threshold will revert to £125,000 (down from £250,000) from 1 April 2025. The 0% thresholds for first-time buyers will also reduce by £125,000, bringing it back down to £300,000.

ISAs

The current ISA limits will remain in place until 5 April 2030.

The British ISA, announced in the previous Spring Budget, has been scrapped.

When will I be tested on the new rules?

The CII states:

 “Candidates will be examined on the basis of law and practice in England unless otherwise stated.  The general rule is that the new tax year and changes arising from the Finance Act will be examined from 1 September each year. Other changes, not related to the Finance Act, will not be examined earlier than 3 months after they come into effect.”