When is the Budget?

The autumn budget for 2024 is due on Wednesday, October 30.

Typically, the Budget speech begins at 12:30 UK time and lasts for around sixty minutes. Both the BBC News website and BBC iPlayer will provide a live broadcast of it.

As soon as Reeves takes a seat, Conservative Party leader and current head of the opposition, Rishi Sunak, will reply to the Budget with a speech.

 

What may the Budget consist of?

Raising the income tax, national insurance, and value added tax has already been rejected by the administration.

However, there has been a lot of conjecture over more potential tax increases that would be disclosed following the warning about "difficult decisions":

 

Tax on capital gains

External capital gains tax is levied on the profit received from the sale of assets with appreciation, including investments or second houses.

Individuals and certain company owners are responsible for paying it, and the rates are determined by your overall income tax liability.

 

Tax on inheritance

The external income tax rate, which is now 40%, is often applied to the amount of a dead person's assets that exceed £325,000.

 

Fuel tax

There hasn't been an increase in fuel duty in over ten years. The price was set at zero in 2012 and then reduced by five pence in March 2022 due to a spike in pump costs that followed Russia's incursion into Ukraine.

The RAC claims the decrease might be overturned, although several auto clubs contend the cut was never passed on to drivers.

 

Relief from pension taxes

Up to a certain sum, individuals who contribute to private pension pots get external tax reductions on their payments. This increases the quantity saved.

Saver tax relief is now granted at the same rate as income tax; basic rate taxpayers receive tax relief at a rate of 20%, while higher rate taxpayers receive tax relief at a rate of 40% or 45%.

A single flat rate of relief might be implemented by the government, which would reduce the system's generosity towards higher earnings.

 

Non-dom tax status

A UK resident is referred to as "non-dom" if their permanent residence, or domicile, for tax purposes, is outside of the country. Therefore, they do not have to pay UK tax on money they earn abroad.

Jeremy Hunt, the then-chancellor, said in the March Budget that non-dom tax status would be eliminated, with limited exceptions.

Although there are concerns that the current plans won't generate as much revenue as anticipated, Labour has stated that it intends to toughen them.

 

Changes that have already been made

 

Payments for winter fuel

Future payments, according to the government, will only be given to people who receive means-tested assistance or pension credit.

Unions, charities, and several MPs have questioned the measures.

 

State pension

In April 2025, the state pension is scheduled to increase by 4%.

Liz Kendall, the secretary for work and pensions, will confirm the rise at budget time.

 

Taxes on private education

According to the administration, private school tuition will include VAT as of January 1.

There will be no business rates relief for certain private schools.

 

Windfall tax on energy

The UK government is planning to raise the windfall tax on the profits that oil and gas companies generate there. The external energy earnings levy is scheduled to increase from 35% to 38% on November 1st and will be in effect until March 31st, 2030.

 

(Sources: bbc.co.uk)