Small Business Accountants

Autumn Budget 2024 - Impact on Businesses

The Autumn Budget 2024, delivered by Chancellor Rachel Reeves on 30 October, introduced major changes affecting UK businesses. Employer National Insurance rose from 13.8% to 15%, the National Minimum Wage increased across all age brackets, capital gains tax rates rose on non-residential assets, and inheritance tax reforms were announced for business and agricultural property from April 2027. Business rates relief was also restructured.

By Jordan Macey MAAT Reviewed by Noor Fiaz Updated 16 Apr 2026 3

Key takeaways

The National Minimum Wage for workers aged 21 and over rose to £12.21 per hour from April 2025, a 6.7% increase, with even larger percentage rises for younger workers and apprentices.
Employer National Insurance increased from 13.8% to 15% from April 2025, and the secondary threshold dropped from £9,100 to £5,000, significantly raising employment costs for businesses.
Capital gains tax rates on non-residential assets rose from 10% to 18% at the basic rate and from 20% to 24% at the higher rate, effective immediately from 30 October 2024.
From April 2027, business and agricultural property assets above £1 million will attract inheritance tax at an effective rate of 20%, ending the previous full exemption for those assets.
The 75% business rates discount was replaced with a 40% discount capped at £110,000, with permanently lower multipliers planned for retail, hospitality and leisure from 2026-27.

Overview

On 30th October 2024, Chancellor Rachel Reeves presented the Autumn budget. With a lot of anticipation and rumours ahead of the budget, here is a summary of the big announcements that are relevant to small businesses.

National Minimum Wage

National Minimum Wage for workers aged over 21 will rise by 6.7% from the 1st April 2025 from £11.44 an hour to £12.21 an hour.
National Minimum Wage for workers aged between 18 and 21 will also rise by a record-breaking 16.3% from the 1st April 2025. From £8.60 an hour to £10.00 an hour.
National Minimum Wage for apprentices will also rise by a record-breaking 17.9% from the 1st April 2025. From £6.40 an hour to £7.55 an hour.

Employers National Insurance

Employer’s national insurance contribution will rise by 1.2% from 13.8% to 15%.
The Secondary Threshold will be reduced from £9,100 to £5,000.
Employment Allowance will increase by £5,000 to £10,500.

Capital Gains Tax

Capital Gains tax will be increased, the lower rate will be raised from 10% to 18%, while the higher rate will rise from 20% to 24%. However there will be no increase on the 24% capital gains rate imposed on second properties.
This is effective immediately - any property, investments or assets disposed on or after 30th October 2024 will be taxed at this rate.
For the 2024 to 2025 tax year affected taxpayers will be required to identify gains made before and after 30 October 2024 to determine the correct rate of Capital Gains Tax when completing their tax return.

We have updated our capital gains tax calculator further below with the new 2025/2026 rates and will look at adjusting this for disposals made from 30th October 2024.

You can read the capital gains policy paper here.

Inheritance Tax

From April 2027 there will be reforms to Business & Agricultural assets after £1 million these assets will attract inheritance tax of 20%.
UK Stocks listed on the AIM Market will have a 20% inheritance tax applied to them, along with a 50% relief.

Business rates

In April 2024, the 75% discount to business rates is due to expire and will be replaced with a 40% discount. This will be capped at a maximum discount of £110,000.

The government announced its intention to introduce permanently lower business rates for retail, hospitality and leisure properties from 2026-27 to level the playing field for the high-street.

Increased Public Services

The government will spend £5 billion on housing.
The Department for Education will receive £6.7 billion a 19% real terms increase, Funds will be used to rebuild schools and support the hiring of teachers.
The NHS will receive an increase of £25.7 billion.
There will be a £2.9 billion increase in military spending and the government will continue their £3 billion commitment each year to Ukraine for the duration of the war.
Government will compensate victims of the infected blood scandal with £11.8 billion, and there will be another £1.8 billion for victims of the Post Office Horizon IT Scandal.

Frequently asked questions

What were the main business changes in the Autumn Budget 2024?

The Autumn Budget 2024 increased employer National Insurance from 13.8% to 15%, raised the National Minimum Wage across all age groups, increased capital gains tax rates on non-residential assets, reformed inheritance tax relief for business and agricultural property from April 2027, restructured business rates relief and announced over £50 billion in additional public services spending including the NHS, education and housing.

How did the National Minimum Wage change in the Autumn Budget 2024?

Workers aged 21 and over saw their rate rise from £11.44 to £12.21 per hour, a 6.7% increase from April 2025. The 18-20 rate jumped 16.3% to £10.00 per hour, and the apprentice rate rose 17.9% to £7.55 per hour. These increases represented some of the largest percentage rises in recent years and pushed up payroll costs for businesses employing lower-paid staff.

What happened to employer National Insurance in the Autumn Budget 2024?

From April 2025, the employer NIC rate increased from 13.8% to 15%, adding 1.2 percentage points to the cost of employing staff. The secondary threshold dropped from £9,100 to £5,000, meaning employers started paying NIC sooner on each employee's earnings. To offset this for smaller firms, the Employment Allowance rose from £5,000 to £10,500 and the £100,000 eligibility cap was removed.

How did capital gains tax rates change in the Autumn Budget 2024?

From 30 October 2024, the lower rate on non-residential assets rose from 10% to 18% and the higher rate rose from 20% to 24%. The existing 24% higher rate on residential property remained unchanged. These changes took effect on budget day itself, so any asset disposals completed after that date were subject to the new higher rates regardless of when the asset was originally acquired.

What inheritance tax changes were announced for businesses?

From April 2027, business property relief and agricultural property relief will be reformed. The first £1 million of qualifying business and agricultural assets will remain fully exempt from inheritance tax. Assets above that threshold will attract an effective IHT rate of 20%, compared to the standard 40% rate. AIM-listed shares will receive 50% relief, resulting in the same effective 20% rate.

How did business rates change in the Autumn Budget 2024?

The existing 75% business rates discount for retail, hospitality and leisure properties was replaced with a 40% discount capped at £110,000 per business. From the 2026-27 financial year, the government plans to introduce permanently lower business rates multipliers for these sectors. This shift moves from temporary annual relief to a structural change in how eligible high-street businesses are taxed.

What public services spending was announced in the Autumn Budget 2024?

The budget committed over £50 billion in additional public spending. Key allocations included £25.7 billion for the NHS, £6.7 billion for education, £5 billion for housing, £2.9 billion for the military, £11.8 billion for infected blood compensation and £1.8 billion for Post Office Horizon scandal victims. This spending was funded in part by the tax rises on employers, capital gains and business property.

How should businesses respond to the Autumn Budget 2024 changes?

Businesses should review their payroll budgets to account for higher employer NIC and minimum wage costs from April 2025. Those planning asset sales should consider the increased capital gains tax rates already in effect. Business owners with estates above £1 million in qualifying assets should review succession plans ahead of April 2027 IHT changes. Speaking with an accountant can help identify the most tax-efficient strategies.