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30 October 2024
Issue: 8092 / Categories: Legal News , Tax , Employment , Public , Property
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Budget 2024: NICs rise & non-doms go

Chancellor Rachel Reeves has abolished non-doms and raised national insurance for medium and large employers in a dramatic budget that aims to raise an extra £40bn in taxes

Current tax rules for non-UK domiciled individuals will end on 6 April, replaced by a system based on tax residence. Employers’ national insurance contributions (NIC) go up by 1.2% to 15% from April, and the threshold will be reduced from £9,100 to £5,000, raising £25bn per year. However, 865,000 small employers will not pay any NICs at all as the allowance is rising from £5,000 to £10,500.

Nicky Owen, head of professional practices, Crowe UK, said: ‘One upshot of the increase in employers’ NICs is that LLP structures have instantly become more attractive. Professional practice firms may want to relook at their salaried partners and consider whether it is time to promote them to fully fledged partners.’

Reeves gave an extra £5bn for housebuilding. Stamp duty land tax for second homes rises from 3% to 5%. Jonathan Achampong, head of residential property, Howard Kennedy, said the increase ‘has come as a bit of a surprise to the residential property market and will, no doubt, lead to some frantic activity to get deals over the line this evening.

‘Over the coming days and weeks, potential buyers and investors are likely to seek to renegotiate purchase prices to factor in this additional cost, and we may also see some downward pressure exerted on sale prices over the coming months.’

Reeves vowed to ‘invest, invest, invest’ and promised ‘no return to austerity’, with an extra £5bn for 1.5 million new homes, £6.7bn for education and £22.6bn (daily spend) and £3.1bn (capital) for the NHS.

The Ministry of Justice budget rises 5.6% to £13.8bn in 2025-26, with funding for the Law Officers’ Department, which finances criminal prosecution services, rising 7.5% to £1.1bn.

Sam Townend KC, chair of the Bar Council, welcomed the ‘much-needed real terms increases’ but said justice would need ‘sustained funding through next spring’s spending review to move away from crisis mode’.

Issue: 8092 / Categories: Legal News , Tax , Employment , Public , Property
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MOVERS & SHAKERS

Jurit LLP—Caroline Williams

Jurit LLP—Caroline Williams

Private wealth and tax team welcomes cross-border specialist as consultant

Freeths—Michelle Kirkland Elias

Freeths—Michelle Kirkland Elias

International hospitality and leisure specialist joins corporate team as partner

Flint Bishop—Deborah Niven

Flint Bishop—Deborah Niven

Firm appoints head of intellectual property to drive northern growth

NEWS
Talk of a reserved ‘Welsh seat’ on the Supreme Court is misplaced. In NLJ this week, Professor Graham Zellick KC explains that the Constitutional Reform Act treats ‘England and Wales’ as one jurisdiction, with no statutory Welsh slot
The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’
A year after the $1.5bn Bybit heist, crypto fraud is booming—but so is recovery. Writing in NLJ this week, Neil Holloway, founder and CEO of M2 Recovery, warns that scams hit at least $14bn in 2025, fuelled by ‘pig butchering’ cons and AI deepfakes
After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent
Family courts are tightening control of expert evidence. Writing in NLJ this week, Dr Chris Pamplin says there is ‘no automatic right’ to call experts; attendance must be ‘necessary in the interests of justice’ under FPR Pt 25
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