Budget 2024: Key tax points at a glance
Chancellor Rachel Reeves has delivered Labour’s first Budget since 2010, after the party’s return to power in July’s general election.
She announced tax rises worth £40bn to fund the NHS and other public services.
Here is a summary of the main measures.
The Bank of England (BoE) made its first interest rate cut in over four years, reducing the base rate from 5.25% to 5.0%.
This marked a shift after a prolonged period of rate hikes, with rates held at a 16-year high since August 2023.
The decision was taken to support the economy amid mixed signals: inflation had briefly hit the BoE's 2% target but was expected to rise again due to increasing energy prices, and wage growth remained elevated.
The Monetary Policy Committee (MPC) was split, with five members voting for the cut and four preferring no change, reflecting the delicate balance between inflation control and economic growth.
Personal taxes
Rates of income tax and National Insurance (NI) paid by employees, and of VAT, to remain unchanged
Income tax band thresholds to rise in line with inflation after 2028, preventing more people being dragged into higher bands as wages rise
Basic rate capital gains tax on profits from selling shares to increase from 10% to 18%, with the higher rate rising from 20% to 24%
Rates on profits from selling additional property unchanged
Inheritance tax threshold freeze extended by further two years to 2030, with unspent pension pots also subject to the tax from 2027
Exemptions when inheriting farmland to be made less generous from 2026
Business taxes
Companies to pay NI at 15% on salaries above £5,000 from April, up from 13.8% on salaries above £9,100, raising an additional £25bn a year
Employment allowance - which allows smaller companies to reduce their NI liability - to increase from £5,000 to £10,500
Tax paid by private equity managers on share of profits from successful deals to rise from up to 28% to up to 32% from April
Main rate of corporation tax, paid by businesses on taxable profits over £250,000, to stay at 25% until next election
Wages, benefits and pensions
Legal minimum wage for over-21s to rise from £11.44 to £12.21 per hour from April
Rate for 18 to 20-year-olds to go up from £8.60 to £10, as part of a long-term plan to move towards a "single adult rate"
Basic and new state pension payments to go up by 4.1% next year due to the "triple lock", more than working age benefits
Eligibility widened for the allowance paid to full-time carers, by increasing the maximum earnings threshold from £151 to £195 a week