What Are the Implications of the Latest Budget?

Budget 2024: What It Means for Individuals and Businesses

The UK Budget sets out tax policies, reliefs, and spending priorities for the year ahead. Key updates from the 2024 Budget include:

1. Personal Tax Changes

• The Income Tax Personal Allowance and higher-rate threshold remain frozen, meaning more taxpayers may fall into higher tax bands due to inflation.

2. Corporation Tax

The tiered Corporation Tax system continues, with the Small Profits Rate at 19% and the Main Rate at 25%. Marginal relief is available for profits between £50,001 and £250,000.

3. Investment Incentives

The government has extended the Annual Investment Allowance (AIA) cap of £1 million, allowing businesses to claim 100% tax relief on qualifying plant and machinery.

4. Cost of Living Support

Increased funding for energy bill support schemes and business rates relief for retail, hospitality, and leisure sectors.

For a detailed analysis, visit the HM Treasury website.