There were few changes to Income Tax reliefs proposed in the Autumn Budget 2024. ISA investment levels remain the same as do personal Income Tax rates. Making Tax Digital (MTD) for Income Tax will become compulsory for sole traders and landlords with an income over £20,000 but no timetable has been announced.
The Chancellor, Rachel Reeves, announced the following measures:
Statutory Neonatal Care Pay: Income Tax
From Royal Assent to Finance Bill 2024-25
- ITEPA 2003 will be amended to confirm that Statutory Neonatal Care Pay is a taxable social security benefit subject to Income Tax.
Help to Save
- The Help to Save scheme will be extended to 5 April 2027.
- From April 2025, the scheme will be expanded to include all working Universal Credit claimants earning £1 or more.
- Under an enhanced scheme from April 2027, bonuses will be paid more regularly based on a more favourable calculation method.
- A consultation has been launched on the most effective way to deliver the new scheme.
ISA, Junior ISA, Lifetime ISA and Child Trust Fund annual subscription limits
Until April 2030
- ISAs remain unchanged at £20,000.
- Junior ISAs remain unchanged at £9,000.
- Lifetime ISAs remain unchanged at £4,000.
- Child Trust Funds are unchanged at £9,000.
British ISA
- The outline measure introduced in the Spring Budget 2024 has been scrapped.
Making Tax Digital (MTD) for Income Tax
- This will be extended to sole traders and landlords with an income over £20,000 by the end of the Parliament. The precise date will be set out at a future fiscal event.
Income Tax allowances and rates
Unchanged for 2025-26 with the following exceptions
- Married Couple's Allowance for those born before 6 April 1935 increases:
- Maximum up to £11,270 from £11,080 in 2024-25.
- Minimum up to £4,360 from £4,280 in 2024-25.
- Blind Person's Allowance up to £3,130 from £3,070 in 2024-25.
The freeze on allowances and rates ends on 5 April 2028.
High-Income Child Benefit Charge (HICBC) reform
- The government will not proceed with the reform to base the High-Income Child Benefit Charge (HICBC) on household incomes.
Useful guides on this topic
Autumn Budget 2024: At a glance
Our At a glance view to the Autumn Budget 2024
Our Autumn Budget 2024: Live Speech highlights
Our live feed summary of the highlights of the Chancellor's Autumn Budget speech.