The Chancellor of the Exchequer recently presented the much-anticipated Autumn Budget for 2024, introducing pivotal fiscal measures designed to stimulate economic growth, address the cost-of-living crisis, and support key UK sectors. This budget carries important implications for investors, especially across taxation, green energy, housing, and infrastructure. Here are our top 10 takeaways:

Capital Gains Tax (CGT)

Capital gains tax rates are increasing, with the higher rate moving from 20% to 24% and the lower rate from 10% to 18%. The annual CGT exemption remains at £3,000, creating added pressure on investors to carefully manage gains.

Personal Tax and Allowances

The personal tax-free allowance will stay frozen at £12,570 until 2028, with the higher-rate threshold remaining at £50,270. With inflation, the real value of these allowances is effectively reduced, making tax-efficient strategies even more critical for investors.

Corporate Tax and Business Support

The corporation tax rate remains at 25%, while the R&D tax credit scheme has been extended for SMEs, providing substantial support. The Energy Profits Levy on oil and gas firms has also increased from 35% to 38%, aligning with the government’s effort to capture more from these high-earning sectors.

Wages

As of April 2025, the National Living Wage (NLW) for those aged 21 and over will rise from £11.44 to £12.21 per hour, and the National Minimum Wage (NMW) for 18-20-year-olds will increase to £10.00 per hour. This adjustment aims to help low-income earners manage cost-of-living pressures.

AIM Shares

AIM-listed shares continue to qualify for inheritance tax (IHT) relief, offering a valuable tax advantage for estate planning. Although these shares carry higher risk, their IHT exemption after two years makes them a popular choice in tax-efficient portfolios.

Inheritance Tax (IHT)

The inheritance tax threshold remains at £325,000. Starting in April 2027, however, pension pots will be included in IHT calculations, with pension wealth taxed at 40% as part of the estate. This change increases complexity for estate planning, particularly for those with substantial pension assets.

ISA Limits

The annual ISA allowance remains unchanged at £20,000, and the Junior ISA allowance at £9,000. These limits continue to provide crucial tax-free saving and investment opportunities for investors looking to shield income and gains from taxation.

Enterprise Investment Scheme (EIS)

The Enterprise Investment Scheme remains a cornerstone for tax-efficient investments, offering 30% income tax relief on investments up to £1 million per year (or £2 million in knowledge-intensive companies). EIS investments also qualify for CGT deferral and are CGT-free after three years, making them appealing as government support for innovation and R&D continues.

Green Energy Investments

The government has allocated £12 billion for offshore wind, solar energy, and carbon capture projects, supporting the UK’s 2050 net-zero target. These green sectors are poised for substantial growth, offering private equity investors compelling opportunities in sustainable investments.

Housing and Property Investments

A £10 billion investment in social and affordable housing has been confirmed, along with continued support for Build-to-Rent (BTR) developments. First-time buyers will still benefit from Stamp Duty Land Tax (SDLT) relief, ensuring some stability in the housing market. For property investors, BTR developments are an increasingly reliable source of income, given the strong demand for rental housing.

The Autumn Budget underscores the government’s commitment to driving innovation, supporting green energy initiatives, and tackling housing issues. Expert guidance is essential for navigating these investment opportunities.

At Beaufort Property Invest, we’re dedicated to helping our investors maximise returns. By focusing on key areas of growth within our build programmes each of our developments. Present some promising opportunities:

With the government’s strong commitment to green energy and innovation we ensure use of energy efficient green technologies and processes that drive advancement toward net-zero goals. our investors can benefit from these transformative, long-term strategies in Beauforts build programmes.

Alternative Property Investments: The government’s £10 billion investment in housing, along with enhanced incentives for Build-to-Rent (BTR) projects, offers stable, long-term returns. This is particularly relevant for institutional investors as demand for affordable rentals continues to rise. The strong government support, sustained demand, and favourable policies provide a promising, lower-risk investment opportunity, especially in areas facing housing shortages. Family housing and BTR developments present excellent avenues for steady income and portfolio diversification.

Capitalising on Investment Opportunities

The Autumn Budget 2024 lays out a clear path for adapting to the evolving investment landscape. By emphasising sustainable building and a laser like focus on supporting the solution to the UK housing crisis. Beaufort is ready to help investors optimise their portfolios. We encourage you to connect with your dedicated account managers to explore the most suitable strategies aligned with investment goals.