Chancellor Rachel Reeves presented the Autumn Budget 2024, marking a pivotal step for the UK’s economic policy under Labour’s leadership. The budget places a strong emphasis on fiscal responsibility, social investment, housing support, and tax reform, setting a strategy to reduce deficits and support economic growth. This summary outlines the key elements of the budget, with a specific focus on the implications for new homeowners and non-domiciled residents.
Key Fiscal and Economic Reforms
1. Fiscal Responsibility and Economic Stabilisation
The Chancellor announced a commitment to address a £22 billion fiscal gap through targeted tax measures, aimed at balancing the national budget by 2029/30 and reducing net financial liabilities relative to GDP. To achieve these targets, the budget includes a £40 billion increase in tax revenues, sourced from corporate and individual tax adjustments. The fiscal rules aim to stabilise finances and lay foundations for sustainable future growth, emphasising transparency with ongoing reviews by the Office for Budget Responsibility (OBR).
2. Public Service Investment and Social Support
Reflecting a commitment to improve essential services, the government has allocated substantial funding for health and education. The NHS will receive a £22.6 billion boost, targeting reduced wait times and enhanced patient care, while education spending will increase by £6.7 billion for infrastructure, teacher recruitment, and expanded services such as breakfast clubs. Additionally, an increase in the National Living Wage (NLW) of 6.7%, effective from April 2025, is expected to alleviate cost-of-living pressures for working households.
3. Tax Reforms for Economic Resilience
Several new tax measures are introduced, designed to secure additional revenue without overburdening individuals. Changes include:
- Employers’ National Insurance Contributions (NIC): An increase of 1.2 percentage points in April 2025, alongside a reduction in the secondary earnings threshold, aims to support public finances.
- Capital Gains Tax (CGT): Rates will increase, with the lower rate rising to 18% and the higher rate to 24%.
- Inheritance Tax (IHT): A freeze on IHT thresholds until 2030 aligns with broader fiscal goals, maintaining the tax burden for high-value estates without immediate increases.
4. Corporate Tax Roadmap
The government aims to provide stability for businesses with a Corporation Tax cap of 25% for the duration of this Parliament. A commitment to full expensing of capital expenditures and consultations on simplifying capital allowances illustrate a move toward a more predictable tax environment for companies, promoting growth while contributing to public revenue. Measures also include continued support for research and development (R&D) incentives and international tax alignment with OECD’s.
Implications for New Homeowners
The Autumn Budget introduces specific provisions for homeowners, especially those entering the property market:
- Affordable Housing and Community Development: A £500 million allocation to the Affordable Homes Programme in 2025/26 is expected to improve access to affordable housing. This programme allows local authorities to retain proceeds from Right to Buy, supporting new home builds. Additionally, energy-efficiency investment incentives offer grants or tax reliefs for eco-friendly home upgrades, such as heat pumps, appealing to new homeowners seeking sustainable options.
- Property Tax Considerations: While there were no direct changes to Stamp Duty Land Tax (SDLT) thresholds, expanded affordable housing initiatives and local council support for property development aim to alleviate the financial strain on first-time buyers. Although SDLT relief was not addressed, future adjustments remain possible as the government seeks to balance property tax with market stability.
Considerations for Non-Domiciled Residents (Non-Doms)
The 2024 Autumn Budget introduces updates that affect tax obligations for non-domiciled residents, particularly in relation to international transparency requirements:
- Cryptoasset Reporting and Compliance: Starting January 2026, the UK will implement the OECD’s Cryptoasset Reporting Framework (CARF), requiring platforms to report non-resident users’ transactions. This measure aligns with international tax reporting standards and may require non-doms with crypto investments in the UK to be more vigilant about international tax obligations.
- Common Reporting Standard (CRS) Updates: Although domestic expansion of the CRS has been postponed, international reporting obligations will continue under this framework. These adjustments underline the government’s commitment to reducing tax avoidance and encourage greater transparency for UK-held assets. Non-doms may need to reassess UK-based financial activities to ensure compliance with evolving global tax standards.
- Anti-Avoidance Initiatives: The government plans to increase scrutiny on umbrella companies and related labour supply structures, addressing tax avoidance across international income sources. Non-doms engaging in specific employment structures within the UK may see heightened compliance requirements.
Looking Forward
The 2024 Autumn Budget seeks to stabilise and strengthen the UK economy with strategic investments in public services, responsible fiscal policies, and targeted tax measures. New homeowners stand to benefit from housing support and sustainability incentives, while non-domiciled residents will face enhanced reporting requirements and compliance expectations. These initiatives reflect a broader commitment to equitable growth, positioning the UK as a resilient, transparent environment for both residents and international investors.
The combined effect of these measures is a recalibrated economic landscape that supports long-term development, fiscal stability, and fair tax contributions, creating a balanced path forward for households, businesses, and non-dom stakeholders.
Author: Ava Vinokourova
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