There was much talk of an improved position than that left by the Opposition and updated forecasts but obviously these are just that, forecasts and as we have seen before whether these are met or simply updated time and again, only time will tell.

The Chancellor stated ‘Growth is the central mission of the government. The government is restoring stability, increasing investment, and reforming the economy to drive up prosperity and living standards across the UK’.

One of the investments mentioned is into HMRC with 600 debt management and 500 compliance officer positions announced to try to reduce the tax gap. There were also a number of consultations published today around tax clearances, the penalty regime and anti-avoidance which may indicate more changes for the future.

As promised, there were no ‘new’ tax increases announced, but that doesn’t mean there aren’t any changes in April 2025. Below we have highlighted those changes previously announced that come into force in the coming days and some further down the road.

Rises in Employers’ National Insurance

This will increase from 13.8% to 15.0% from 6 April and the secondary threshold (at which employers begin paying the standard rate of NIC) will reduce from £9,100 to £5,000. These changes will bring a significant additional tax cost for many employers, which the government estimates this will bring in an extra £25 billion in taxes.

Alongside this, the Employment Allowance will be increased to £10,500 from £5,000. More employers will be able to claim this allowance as the £100,000 NIC liability threshold will be removed.

Double cab pickups ‘special’ tax treatment ends

From 1 April 2025, HMRC will treat double cab pickup vehicles as ‘cars’ for the purposes of capital allowances and benefits in kind, thereby reducing the tax advantages. However existing capital allowances treatment will apply to vehicles purchased before April 2025, and transitional benefit in kind rules will apply for vehicles purchased, leased or ordered before April 2025, so there are still a few days left to take action and take advantage of the current rules.

Increases in Capital Gains Tax for business assets

The Business Asset Disposal Relief (‘BADR’) rate will increase from 10% to 14% from 6 April 2025 and will rise again to 18% from 6 April 2026. Business owners may wish to consider bringing forward a sale to take advantage of the lower rates while they are still available.

Our article sets out they key points here: Capital Gains and Inheritance Tax reforms: What business owners need to know

The Furnished Holiday Let regime will end

From April, these properties will be taxed in the same way as ordinary residential properties. Owners of furnished holiday lets will therefore no longer be able to claim full interest relief and capital allowances, and other restrictions will also apply.

Our article sets out the changes in full and outlines potential actions you can take to mitigate the impact: Furnished holiday lettings – Change in the rules

Increases in Stamp Duty Land Tax (‘SDLT’)

From 1 April, the tax-free threshold will halve from £250K to £125K, with a 2% rate of SDLT becoming payable on that proportion of the purchase price. The tax-free threshold for first-time buyers will also drop from £425K to £300K.

Abolition of ‘non- UK domiciled’ status

From April 2025 the non- domicile regime will end and will be replaced with the Foreign Income and Gains (‘FIG’) regime. Broadly, the concept of domicile will be abolished and replaced with a 10-year test based on residency in the UK.

HMRC late payment interest will rise again

HMRC charges on unpaid tax liabilities will increase by 1.5% from 6 April 2025.

Other key tax changes were announced in the 2024 Autumn Budget, which will come into force from 2026 onwards are:

Restrictions to Business Property Relief (‘BPR) and Agricultural Property Relief (‘APR’)

From April 2026 100% relief will be capped at the first £1 million of combined business and agricultural assets, with only 50% relief being available on the excess over £1 million.

Our articles here provide more detail and outline the actions that can potentially be taken before these rules come into force.

• Business Property Relief - Proposed changes from 6 April 2026
• Is this the end of the road for BPR and APR?

Pension funds will be taxable on death

From April 2027 the value of an individual’s pension fund will be added to the total value of their estate when they die and will be subject to Inheritance Tax.

Making Tax Digital (‘MTD’) for Income Tax will be rolled out for sole traders and landlords

From April 2026, sole traders and landlords with qualifying income over £50,000 will need to maintain digital records and submit updates to HMRC every quarter, using software that is compatible with HMRC’s system. The £50,000 threshold will be reduced to £30,000 in April 2027, and it was announced today that the threshold would be dropped further to £20,000 in April 2028, bringing an additional 900,000 taxpayers into the scheme.

More detail is set out here in our Autumn 2024 budget guide: Budget update