The Chancellor's Autumn Budget 2024 announcement has brought stability and opportunities for businesses, with changes that will impact financial planning, investment strategies, and operational costs. Let’s delve into the key highlights and what they mean for businesses across the UK.

Corporation Tax Rates

The government has confirmed no changes to Corporation Tax rates. This stability can help businesses plan with certainty. From April 2025:

• 25% for companies with profits over £250,000.
• 19% for small profit companies with earnings up to £50,000.
• A marginal relief for profits between £50,001 and £250,000 ensures a gradual increase in tax rates.

Notably, the main rate will remain capped at 25% for the rest of the parliamentary term, making it the lowest rate among G7 countries. For businesses, this is a welcome assurance amidst global economic uncertainties.

Capital Allowances

As Full Expensing rules continue, investment-focused businesses can be assured, offering a 100% write-off on qualifying plant and machinery. The Annual Investment Allowance, set at £1 million, ensures robust support for incorporated and unincorporated businesses.

Moreover:

• Zero-emission cars and electric vehicle charge points will benefit from 100% First Year Allowances (FYA), extended until 2026.
• Companies in the green technology sector or with a sustainability agenda can use these incentives to modernise operations.

Business Rates

The retail, hospitality, and leisure (RHL) sectors will receive a boost with 40% relief on business rates for eligible properties in England. With relief capped at £110,000 per business, this measure provides targeted support to industries still recovering from the pandemic and ongoing economic pressures.

Additionally:

• The small business multiplier is frozen at 49.9p.
• The standard multiplier rises to 55.5p.

This freeze offers a measure of stability for small businesses, allowing them to manage budgets effectively.

VAT Registration Threshold

The VAT registration threshold remains at £90,000 from April 2025, with the deregistration threshold set at £88,000. While this provides consistency, businesses nearing the threshold should plan to avoid sudden registration obligations, particularly during periods of growth.

If you are a business owner unsure how these changes might affect you or want to leverage new allowances to enhance your growth, please do get in touch by calling 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it.