So, after weeks of speculation, rumour, leaked “hints”, and countless articles on what may or may not be in the Chancellor’s, Rachel Reeves, who incidentally is the UK’s first female Chancellor, first Budget, we finally know.

We already knew some of what the Budget would contain. A revision to the borrowing rules, an increase in the minimum wage, and potentially the much mentioned increase in employers National Insurance. But what else did we discover?

The main headlines are:

Income Tax

• Freeze on tax thresholds to be removed as from 2028/2029 and rates increased by inflation.

National Insurance

• Employers National Insurance on workers’ earnings above £5,000, down from £9,100 currently, with the rate increasing from 13.8% to 15%, from April 2025.
• Employment allowance – which allows companies to reduce their NI liability – to increase from £5,000 to £10,500

Capital Gains Tax

• An increase in the main rates of Capital Gains Tax that apply to assets other than residential property and carried interest from 10% and 20% to 18% and 24% respectively, for disposals made on or after 30 October 2024.
• The rate of Capital Gains Tax that applies to trustees and personal representatives from 20% to 24% for disposals made on or after 30 October 2024
• The rate of Capital Gains Tax that applies to Business Asset Disposal Relief and Investors’ Relief from 10% to 14% for disposals made on or after 6 April 2025, and from 14% to 18% for disposals made on or after 6 April 2026.
  
  

Inheritance Tax

• Freeze on thresholds extended to 2030.
• Reliefs for business and agricultural assets, but only up to £1m after which those assets will attract inheritance tax of 20%.
• Inherited pensions to be subject to inheritance tax (IHT) from 2027.
  
  

State Pension

• An increase of 4.1% from April 2025.
  
  

VAT

• VAT to be added to private school fees from 1 January 2025.
  
  

National Minimum Wage

• Over 21’s receive an increase of 6.7% from £11.44 to £12.21 per hour.
• 18 – 20 year olds receive an increase of 16.27% from £8.60 to £10.
• Apprentices receive the largest increase, 17.96%, from £6.40 to £7.55.
• Increases are effective from April 2025.
  
  

Non-Domicile

• Concept of non-domicile residents will be abolished from April, to be replaced with a modern, simpler, fairer and competitive residence-based regime.
  
  

Air Passenger Duty

• Air passenger duty will increase by up to £2 for each economy short-haul flight.
• Private jets will attract an extra 50% air passenger duty, up to £450 per passenger.
  
  

Fuel Duty

• Extends the freeze for a year and maintains the last government’s 5p cut.
  
  

It is still too early to say how the markets will react to the Budget, and only time will tell if the changes to National insurance will affect recruitment and/or employee wages.

Of course, here in Scotland certain taxes are devolved and we therefore have the Scottish Budget in December to look forward to, so there may be more pain to come.