The chancellor maintained the £1m threshold allowance of the Business Asset Disposal Relief (BADR), formerly called Entrepreneur’s Relief, on business gains when founders sell their businesses. This rate, currently at 10 per cent, will rise to 14 per cent in April 2025 and 18 per cent the following year.
Rachel Reeves chose not to reverse the reductions brought to employee national insurance by the previous government in the last financial year but targeted employers instead.
From April, employers will see their NI payments increase by 1.2 per cent to 15 per cent. The threshold at which employers start paying NICs for employees was cut from £9,000 to £5,000.
Capital Gains Tax (CGT) will also be increased – the higher rate will rise from 20 per cent to 24 per cent, and the lower rate will move from 10 per cent to 18 per cent.
